Complaints

• Initial Complaint

  04/29/2024

  Complaint Type:

  Sales and Advertising Issues

  Status:

  Answered

  More info

  The City of Auburn sent my water bill account to collections in the amount of $190. This information was processed incorrectly as I had requested on September 12, 2024, that the services be disconnected as of September 29, 2024. Per *************************** guidance I was to complete the disconnection form and submit it via email with a copy of my driver's license. I followed the guidance provided and **************** did not process my request. The City of Auburn continued to bill me for water services even though I no longer lived in the townhouse in question. I addition they sent the account to collection by way of a 3rd party debt collection agency who is not threatening legal action against me to recover the fees. In speaking with ****************, she advised I did not owe; however she was not willing to provide me with a letter indicating this matter was resolved. Instead, the city of Auburn told me I had to call the third-party collection agency and ask them to reach out to the City of Auburn. In speaking to **************** and providing them with all of the emails they still have not resolved the matter. As a result, I have had my mortgage application for a home that I was in the process of building rejected.

  Business response

  06/07/2024

  Re: Complaint ID #******** - ****************** Past Due Utility Account
  
  We are writing in response to the complaint filed by **************** regarding her past due utility account with the City of Auburn and the subsequent issues related to the debt's reporting by a collection agency.
  
  **************** had an outstanding balance on her utility account, which was subject to our standard collections procedure. The City of Auburn's protocol for managing delinquent utility accounts involves transferring such accounts to a designated collection agency, Penn Credit, which then assumes responsibility for debt recovery efforts.
  
  Upon resolving her debt by making the full payment, **************** requested that we provide a letter confirming the settlement of her account. We promptly issued a letter to ****************, clearly stating that her utility account was settled in full. This letter was intended to assist her in documenting the resolution of her debt.
  
  However, **************** also requested that we ensure the removal of this debt from her credit report. We informed **************** that the City of Auburn does not have the authority to alter credit reports or remove items from them. The reporting of debts to credit bureaus is solely managed by Penn Credit, the collection agency. Therefore, we advised **************** that she would need to contact Penn Credit directly to discuss the removal of this item from her credit report.
  
  To further support ****************, we communicated in writing with Penn Credit, notifying them that her debt was settled in full. Despite our efforts, any changes or removals of credit report items must be addressed between **************** and the reporting agency, Penn Credit.
  
  We understand the importance of accurate credit reporting and have taken all possible steps within our authority to assist **************** in resolving this matter. We regret any inconvenience she may have experienced during this process and have exhausted our options in providing assistance regarding her credit report.
  
  Should you require any further details or documentation regarding this matter, please feel free to contact us. We are committed to providing excellent customer service and ensuring clarity and transparency in our communication.
  
  Thank you for your attention to this matter.
  

  Customer response

  06/07/2024

   
  Complaint: 21624587
  
  I am rejecting this response because: It wasn't until I reached out to the mayor and his council that I received the letter.  I did not request that the item be removed from my credit report.  I informed them they reported falsely and that information needed to be removed.  In addition, I shared the documents that I shared with them that I was no longer remaining in the premises after September 29, 2023.
  
  Sincerely,
  
  ***************************

  Business response

  06/25/2024

  
  Subject: Response to ******************************* Rebuttal
  
  Dear BBB,
  
  I am writing on behalf of the City of Auburn in response to ******************************* complaint regarding her past due utility account and subsequent actions taken under our unpaid debt management policy.
  
  ******************** account was indeed referred to a collection agency in accordance with our established policies regarding overdue accounts. This policy ensures fairness and consistency in the management of municipal utilities and services. Once an account is transferred to a collection agency, they assume responsibility for further communication and collection efforts.
  
  We understand ******************** concern regarding her credit report and its impact on her ability to secure home financing. However, it's important to clarify that the reporting of debts to credit bureaus is governed by federal laws and regulations, including the Fair Credit Reporting Act (****). The accurate reporting of debts by creditors and collection agencies is essential under these regulations, unless there are specific grounds for dispute under the **** guidelines.
  
  Throughout this process, **************** has engaged with our customer service team, management staff, as well as local authorities, including the Mayor and council members, to request the removal of the reported debt from her credit history. We appreciate her diligence and understand the importance of resolving credit issues, especially in relation to significant life events such as home purchases.
  
  We remain committed to assisting **************** within the bounds of applicable laws and regulations. Should **************** wish to pursue further actions regarding the debt reporting or seek guidance on how to proceed, we encourage her to utilize the dispute resolution mechanisms provided by credit reporting agencies and the ****.
  
  Thank you for your attention to this matter. Please do not hesitate to contact us should you require any further information.
  
  Sincerely, 

   

  City of Auburn

  Customer response

  06/29/2024

   
  Complaint: 21624587
  
  I am rejecting this response because again their details regarding the event are not accurate. I will continue to support my complaint and how they inaccurately reported information via a third-party collection agent. They should accept their negligence regarding the amount that was reported.  It wasn't until I reached out to the councilman that the matter was resolved.  I am appreciative for his assistance.

  My request for resolution is that the City of Auburn put in place better practices and procedures prior to reporting matters that *** be false.  As a woman of color, my credit and my name are all I have.  It wasn't until the matter was escalated to the ***or and city councilman that my voice regarding the situation was heard.  

  I am finished with going back and forth with the City of Auburn. The third-party collection agency has removed the derogatory report from my credit history.  Again, I am appreciative for the support the councilman provided.

  
  Sincerely,
  
  ***************************

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