Lakeport, CA asked in Consumer Law for California

Q: Can a California County Water Company charge whatever they like for late fees?

I was a few days late paying my water bill so am OK with paying a late fee. However, my water district (Class C, 1800 connections) charges a late fee of $15 on all bills - typically $40-$60 - which seems excessive. I think $5 is fair.

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1 Lawyer Answer
James L. Arrasmith
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Answered

A: Under California law, utility companies, including water districts, have the authority to establish late fees for overdue payments. However, these fees must be reasonable and not excessive. While there is no specific statutory limit on late fees for water bills, the California Public Utilities Commission (CPUC) requires that late fees be just and reasonable. Excessive late fees could potentially be challenged as unfair or unconscionable under California's consumer protection laws.

To address your concern about the $15 late fee imposed by your water district, you may consider reviewing the terms and conditions of service provided by the district. Look for any language regarding late fees and whether there are any provisions for disputing or challenging the amount charged. Additionally, you may explore options such as contacting the water district directly to discuss your concerns and negotiate a lower late fee that you believe to be fair and reasonable.

If you are unable to reach a satisfactory resolution with the water district, you may seek further guidance from legal resources or consumer advocacy organizations regarding your rights and potential courses of action. It's important to approach the situation with an understanding of your rights under California law and to advocate for a fair resolution to the issue of excessive late fees imposed by the water district.

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