N.Y. Comp. Codes R. & Regs. tit. 16 § 609.8

Current through Register Vol. 46, No. 45, November 2, 2024

Section 609.8 - Deferred payment agreements

(a) No telephone corporation shall suspend, terminate or refuse to restore or provide basic local exchange service to a residential customer, who has been an existing residential customer for three months and for whom basic local exchange service has not been terminated for nonpayment during that period because of arrears owed on such person's account unless it offers the customer a deferred payment agreement pursuant to this section. Customers with medical emergencies and customers who are elderly, blind or disabled shall be exempt from such eligibility criteria. However, any such agreement shall not be available to any customer who the commission or its designee determines has the resources available to pay his or her bill. The offer of a deferred payment agreement shall specify the total amount of arrears, the down payment, the installment payments and the time for making such payments. The telephone corporation shall mail to the customer not less than six days prior to termination of service, a notice describing to the customer a deferred payment plan which shall contain a conspicuous, bold-type notice that the customer may obtain the assistance of the commission in reaching an agreement. Where service is already terminated pursuant to section 609.4 of this Part, such notice shall be given at the time the customer requests reconnection. A new deferred payment agreement need not be offered to a customer who is in default on an existing deferred payment agreement; provided, however, that such a customer may have his or her existing payment agreement renegotiated once within a 24-month period if he or she demonstrates that his or her financial circumstances have changed significantly because of conditions beyond his or her control.

(b) A deferred payment agreement:

(1) shall obligate the customer to make timely payments of current charges for basic local exchange service together with payment of the amount deferred during the pendency of the agreement;

(2) shall be for total amounts up to $150 but may be greater amounts if agreed to by the telephone corporation or directed by the commission or its authorized designee;

(3) shall be for a time period of no less than five months unless otherwise agreed to by the customer; and

(4) may require the customer to make a down payment which shall not exceed the lesser of one fifth of the amount deferred or three months of the customer's average billing for basic local exchange service plus the difference, if any, between the total amount of arrears and the amount being deferred.

(c) Telephone corporations and customers should observe the following practices in developing the terms of deferred payment agreements: payment of amounts deferred may be made on a weekly, monthly or longer basis, at the convenience of the parties to the agreement. Telephone corporations must voluntarily offer plans with down payments of lesser amounts than allowed by subdivision (b) of this section when a customer cannot reasonably make a down payment equal to the amount allowed by subdivision (b). Eligible customers may voluntarily waive their right to make a down payment of not more than the amount allowed by subdivision (b) of this section, but telephone corporations cannot require or otherwise solicit customers to make such waiver. Amendments of payment agreements should, to the extent reasonable and practical, reflect the changed circumstances of the customer.

(d) If the telephone corporation believes that a deferred payment agreement should not be offered because a customer has the resources to pay his or her bill, it shall notify the customer and the commission or its designee in writing of the reasons for its belief. The commission or its designee shall, in accordance with the complaint procedures set forth in section 609.16 of this Part, forthwith make a determination whether the customer has the resources to pay his or her bill. A telephone corporation shall stay any suspension or termination activity, and restore or provide service pending the decision on the telephone corporation's complaint by the commission or its authorized designee.

N.Y. Comp. Codes R. & Regs. Tit. 16 § 609.8