U.S. Northeast Heating-Oil Delinquent Bills Top $100 Million

[Javaman]

(things are going to get really bad very soon)

Dec. 12 (Bloomberg) -- Heating-oil dealers in the U.S. Northeast have more than $100 million in unpaid bills from residential and business customers after fuel prices rose to a record, a consumer-debt service found.

The money is owed by customers in New York, Connecticut, Maryland, New Hampshire and Pennsylvania, according to data from Oil Well, a service provided by Rosyln Heights, New York-based Risk Assessment Data LLC. The debt, which piled up after home heating oil soared to a record last winter, comes as homeowners and businesses cope with recession and the highest unemployment level since 1993.

“People will sooner pay their revolving-credit debt that is ranked in credit-reporting agencies and that affects their credit directly,” Larry Smith, owner of closely held Risk Assessment, said yesterday in an interview. “There is no immediate consequence for not paying your oil bill. Oil bills are not consumers’ top priority.”

The figures reflect debt owed to 70 oil dealers that subscribe to the Oil Well service.

In March, residential heating oil rose to an average $3.85 a gallon, according to the U.S. Energy Department, the highest since it began tracking prices in 1990. The department only reports prices during the winter heating season.

http://www.bloomberg.com/apps/news?pid=20601072&sid=aMrEuY7E9Pd0&refer=energy

Couple this with people losing their jobs and not able to pay back these bills, then you will have oil delivery companies not able to stay afloat. This doesn't bode will for next winter.

[Renew Deal]

1. I wonder how much of that comes from foreclosed and abandoned homes.

At least of chunk of that will probably never be paid.

[sandnsea]

2. When businesses don't get paid

it's a tragedy caused by their clients.

When workers don't get paid because that business folds - and consequently can't pay their mortgae or credit cards, workers are told it's poor planning and they should have saved more, even though they never had as much of an opportunity to save as the business owner did.

[thatgemguy]

3. Cash On Delivery

All Heating Oil Suppliers in my area will only do C.O.D.

A few won't even accept a personal check unless you have been a customer for more than two years.

It's was difficult last winter coming up with cash to put oil in the tank when oil was over $4 a gallon. Also, unless they bring a minimum of 200 gallons, you pay a delivery surcharge.

Wouldn't it be wise to help people convert from oil heat, or at least help with making their homes better insulated and more energy efficient?