Utility Companies Reporting FAQ

You can report various types of utility services including:

• Electric utilities: Residential and commercial electric service payments
• Gas utilities: Natural gas and propane service payments
• Water and sewer: Municipal water/sewer service payments
• Telecommunications: Phone, internet, and cable service payments
• Waste management: Garbage and recycling service payments
• Installment accounts: Payment plans for appliances or equipment purchases

Note: Use Account Type 92 for utility services (Open accounts) and Account Type 06 for merchandise installment accounts.

Yes, you should obtain customer consent before reporting payment information to credit bureaus. While specific requirements may vary by jurisdiction, best practices include:

• Including consent language in your terms of service or customer agreements
• Providing clear notice about what information will be reported
• Explaining how reporting may affect their credit
• Ensuring compliance with federal and state consumer protection laws

Recommendation: Consult with legal counsel to ensure your consent process meets all applicable requirements.

Reporting utility payments provides several benefits to customers:

• Build Credit History: Regular utility payments help establish or strengthen credit profiles, especially for customers with limited credit history
• Improve Credit Scores: Consistent on-time payments can positively impact credit scores over time
• Access to Better Rates: Improved credit can help customers qualify for better interest rates on loans and credit cards
• Recognition of Responsibility: Payment history for essential services becomes visible to lenders
• Financial Inclusion: Helps underbanked customers participate in the credit system

Late payments are reported according to standard credit reporting guidelines:

• 1-29 days late: Generally reported as current
• 30-59 days late: Reported as 30 days past due
• 60-89 days late: Reported as 60 days past due
• 90+ days late: Reported as 90+ days past due

Important: You must report payment status accurately. Late payments can negatively impact a customer's credit score. Ensure your billing cycles and grace periods are clearly communicated to customers.

When service is disconnected due to non-payment:

• Continue reporting the account with the appropriate delinquency status (71, 78, 80, etc.)
• Report Special Comment Code M (Account Closed at Credit Grantor's Request)
• Report the outstanding balance in the Current Balance field
• Report the Amount Past Due for amounts 30+ days overdue
• Do NOT report the account as closed/paid if there is an outstanding balance

If service is later reconnected: Remove Special Comment Code M and report the account as current (Status 11) if payments are brought up to date.

Utility companies may report two different types of accounts:

Open Accounts (Portfolio Type O):

• Use for ongoing utility services (electric, gas, water, phone, etc.)
• Account Type 92 for most utility services
• Account Type 4D for telecommunications companies
• Balance fluctuates based on monthly usage
• Report zero for Scheduled Monthly Payment Amount

Installment Accounts (Portfolio Type I):

• Use for payment plans on merchandise (appliances, HVAC systems, etc.)
• Account Type 06
• Fixed payment amount and term
• Report the regular monthly payment amount

For customers on payment plans or special arrangements:

• Report the appropriate Special Comment Code (B, C, AB, AC, AI, AU, BP, CP) to indicate special payment arrangements
• Continue reporting payment history accurately based on the agreed-upon payment schedule
• If payments are made according to the new arrangement, report as current (Status 11)
• If payments are missed under the new arrangement, report appropriate delinquency status
• Remove the Special Comment Code when the arrangement ends or account returns to normal terms

Important: Document all payment arrangements and ensure your system can track and report them correctly.

Utility accounts should be reported monthly:

• Submit reports by the 15th of each month for the previous month's activity
• Include all active accounts in each report
• Report both current and delinquent accounts
• Continue reporting closed/paid accounts for 3 months after closure
• Include accounts requiring deletion or correction

Consistency is essential: Regular monthly reporting provides accurate payment behavior data and helps customers build credit over time.

For utility accounts with multiple responsible parties:

• Report all legally responsible parties using appropriate ECOA codes
• Use ECOA Code 1 (Individual) for single account holders
• Use ECOA Code 2 (Joint) for co-account holders who are equally responsible
• All reported parties will receive the same payment history on their credit reports
• You must have proper authorization from each person you report

Note: ECOA Code 3 (Authorized User) is not applicable for utility accounts. Only report legally liable parties.

When a customer closes their utility account:

If account is paid in full:

• Report Account Status Code 13 (Paid or closed account/zero balance)
• Report Current Balance and Amount Past Due as zero
• Report Date Closed as the date of final payment
• Continue reporting for 3 more months, then discontinue

If final bill has outstanding balance:

• Continue reporting with appropriate status (11, 71, 78, 80, etc.)
• Report the outstanding balance in Current Balance
• Report appropriate Amount Past Due if delinquent
• Once paid, follow the "paid in full" guidelines above
• If unpaid and charged off, report Account Status 97

For accounts that are active only part of the year:

• Continue reporting the account year-round, even during inactive periods
• During inactive months, report Current Balance as zero if no charges are due
• Maintain the original Date Opened throughout the seasonal cycles
• If the account is formally closed and reopened each season, treat as account closures/reopenings
• Document your reporting approach and apply it consistently

Recommendation: Maintaining continuous reporting helps customers build longer credit histories.

When a customer transfers service within your service area:

Option 1 - Continue same account (Recommended):

• Keep the same account number and Date Opened
• Update the address in your system
• Continue normal reporting - this maintains credit history length

Option 2 - Close and open new account:

• Report the old account as closed (Status 13) with zero balance
• Create new account with new account number and Date Opened
• Begin reporting the new account

Note: Option 1 is preferred as it maintains the customer's credit history length, which benefits their credit profile.

Security deposits should generally NOT be included in credit reporting:

• Do not include deposit amounts in Original Loan Amount or Current Balance
• Report only the ongoing payment obligations (monthly service charges)
• Deposits are not credit obligations and should not affect credit reporting
• If a deposit is applied to a final bill, report the net amount owed after deposit application

Focus on payment behavior: Credit reporting should reflect how customers pay their monthly utility bills, not deposit requirements.

As a utility company reporting to credit bureaus, you must:

• Fair Credit Reporting Act (FCRA) Compliance: Ensure accuracy of reported information and investigate disputes promptly
• Consumer Consent: Obtain appropriate authorization before reporting
• Data Accuracy: Report complete and accurate information in Metro 2® format
• Dispute Investigation: Respond to consumer disputes within required timeframes (typically 30 days)
• Record Retention: Maintain documentation of payment history and reporting
• Non-Discrimination: Report consistently for all customers without discrimination

Protection: Using M2 Reporter software helps ensure Metro 2® format compliance. Consider appropriate insurance coverage and consult legal counsel about specific obligations.

When sending accounts to collections:

Before transfer:

• Continue reporting the account with appropriate delinquency status
• Report Special Comment Code M if service was disconnected

Upon transfer to collections:

• Report the account deletion using Account Status DA
• This removes your reporting and allows the collection agency to report it
• Do not continue reporting once transferred - this prevents duplicate reporting

Important: Coordinate with your collection agency to ensure smooth transition and avoid double-reporting of the same debt.