Calgary law firm to sue Direct Energy after allegations of over-charging on late payments

Calgary law firm to sue Direct Energy after allegations of over-charging on late payments

Direct Energy customers could be reimbursed if Docken Klym Class Actions Lawyers is successful in its lawsuit against the company.

A few years ago Debbi Allen was eight days late paying the gas bill for her vacation cottage.

Direct Energy charges 1.5% per month on any overdue balance, but Allen noticed that her penalty was a lot more than that.

“I understand a late fee charge, “she says. “ I don’t think it has to be quite as high as 91%, it was 91% of my bill that they were charging me”

Allen went to Direct Energy with the concerns about her bill and it told her that the charge was correct, so she took it a lawyer.

This month an Alberta court certified a class action lawsuit against the company.

Allen’s lawyer, Bill Klym, alleges rather than 1.5% on the overdue balance, Direct Energy is charging a full month’s interest regardless of when the customer pays.

“If you’re eight days late on an interest charge, you don’t pay a full month’s interest, “ Klym explains. “You pay what amounts to eight thirtieths of that month’s interest.

Direct Energy says late payment penalties have at all times been approved by the Alberta Utilities Commission.

It also says none of the allegations have been proven in court and denies the allegations.

If Allen and her lawyers win the case it could total more than 40 million dollars in late payment penalties.