Third-party debts
lead to suit
against Heco
By Debra Barayuga
Star-Bulletin

The Legal Aid Society and Honolulu attorney Norman L.K. Lau have filed a lawsuit against Hawaiian Electric Co. on behalf of several low-income clients, alleging illegal debt collection practices.

The Circuit Court complaint seeks monetary damages and asks that Hawaiian Electric stop the collection practices.

According to the lawsuit, the plaintiffs each opened an account with the utility. Without the customer's consent, Hawaiian Electric allegedly tacked on to their account debts incurred by previous roommates at previous, separate residences.

HECO continually ignored repeated requests to remove the third-party balance and threatened to cut off services for nonpayment, the suit alleges.

In one instance, electricity was shut off, according to the suit.

As the only electric utility company on Oahu, "HECO has a duty to provide its services reasonably, fairly and without oppression to all consumers who agree to pay debts they have no legal obligation to pay," said Legal Aid attorney Robyn Smith.

The utility company's practice violates Hawaii's Uniform Deceptive Trade Practice Act and Hawaii's Unfair Collection Practices Act, Smith said.

Rich von Gnechten, manager of HECO customer service, said the company sympathizes with people involved in such situations.

"People aren't generally responsible for each other's bills," von Gnechten said.

"However, Hawaiian Electric is governed by a tariff in which people who use and benefit from electric service are responsible for paying for that service."

Von Gnechten said the company is acting according to its tariff.

Hawaiian Electric has come across instances in which two people residing at one residence sign up for electric service under the name of one person. When they default on payments and change residences, they then will request service in the other person's name, von Gnechten said.

"We're saying the same people who live in the same property using and benefiting from the service need to be responsible for their obligations," he said. "Because if they don't, the general public will be."