California  |  Credit and Debt Law

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11/04/11, 10:50 am

Legal Question


My local water company, which is privately owned by the estates where I live, requires that we pay the minimum fee for our water in advance. I do not exceed the minimum usage, however, if my payment is not not made at least 15 days in advance of the delivery of that water, I am assessed a late fee. Is it legal to charge a "late fee" when the payment is made in advance?

I told the president of the board of directors that I felt that the fee was out of line and did not believe I should have to pay it. He informed me that even if I made the standard payment, but did not pay the late fee, they would turn off my water.

Am I going to be forced to pay a late fee to a company to which I am basically the creditor? When they fail to deliver water to me because of a problem with the water system I cannot charge them a fee for failure to deliver water as promised.


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