How Long Does Old Light Bill Debt Follow You?
There are two different clocks running on old debt. Understanding the difference gives you power.
Clock 1: Can They Sue You? (4 Years)
In Texas, collectors have 4 years to file a lawsuit for unpaid light bills. That clock starts from your last payment or last activity on the account. Texas Civil Practice & Remedies Code 16.004
After 4 years, the debt becomes "time-barred." Collectors can still call you, but they can't win in court. If they threaten to sue on time-barred debt, that's actually illegal.
Clock 2: How Long on Your Credit? (7 Years)
The debt can show on your credit report for 7 years from when you first missed a payment - even if they can't sue you for it anymore. Texas Business & Commerce Code 20.05
After 7 years, dispute it with the credit bureaus. It should come off. If it doesn't, they're breaking the law.
Watch Out: Don't Restart the Clock
Making a payment or even acknowledging the debt in writing can restart the 4-year statute of limitations. If you have old debt, be careful what you say to collectors. "Let me think about it" is safer than "I know I owe you."
How Light Companies Check Your Debt History
There's no government "blacklist" for people who owe light companies. But there's something similar: a private database that most big light companies use.
The NCTUE Database
NCTUE stands for National Consumer Telecom & Utilities Exchange. It's a credit-report-like system specifically for utility companies. Over 60 light, phone, and cable companies share data here. Consumer Financial Protection Bureau
When you apply for lights, many companies check NCTUE. If you owe someone, they'll see it. This is separate from your regular credit score - you could have decent credit but still have a "hit" in NCTUE.
What Different Light Companies Check
| Type of Company | Credit Check? | NCTUE Check? | What Happens If You Owe |
|---|---|---|---|
| Pay-As-You-Go | No | No | Nothing. They don't look. You're good. |
| Big Traditional (TXU, Reliant, Gexa) | Yes | Yes | They'll want a deposit. If you owe THEM specifically, they can refuse until you pay. |
| Smaller Traditional (Discount Power, etc.) | Yes | Usually | Deposit required, but often lower than the big guys. |
What Light Companies Can and Can't Do (The Rules)
The Public Utility Commission of Texas has rules about this. Knowing them protects you.
They CAN'T:
- x Refuse you service because you owe a different light company PUCT Rule 25.477
- x Hold you responsible for the previous tenant's debt
- x Charge unlimited deposits - there are legal caps
- x Keep your deposit forever if you pay on time
They CAN:
- ! Refuse you if you owe them specifically PUCT Rule 25.477
- ! Require a deposit based on your credit history
- ! Put a switch hold on your address if you broke a payment plan
- ! Send your debt to collections
Deposit Limits Under Texas Law
If they require a deposit, it can't exceed 1/5 of your estimated annual bill or two months of estimated bills - whichever is higher. For most homes, that caps deposits around $300-400. PUCT Rule 25.478
Settling Old Light Bill Debt (If You Decide To)
First question: do you even need to pay it? Probably not right away. Pay-as-you-go gets you lights today without dealing with old debt. But if you want to clear it up - maybe for your credit, maybe to go back to a specific company - here's how.
What You Can Realistically Negotiate
| How Old Is the Debt? | Legal Status | Your Leverage | Realistic Settlement |
|---|---|---|---|
| Less than 6 months | Fully enforceable | Low | 80-100% (payment plan more likely) |
| 6 months - 2 years | Enforceable, sold to collections | Moderate | 50-70% |
| 2-4 years | Still enforceable, but aging | Good | 40-60% |
| 4+ years | TIME-BARRED - Can't sue | High | 20-40% (or don't pay) |
| 7+ years | Should be OFF credit | Total | $0 - Just dispute it |
Option 1: Lump Sum Settlement
Call the collection agency (not the original light company if they sold it). Say: "I'm looking to resolve this account. I can offer [30-40%] of the total today if you'll consider it settled in full."
Critical: Get the agreement in writing BEFORE you pay anything. A verbal promise means nothing.
Option 2: "Pay for Delete"
This is when you agree to pay only if they remove the account from your credit report entirely. It's a long shot - many agencies won't do it because it technically violates their agreements with credit bureaus.
Worth asking, but don't expect it. More commonly, you'll get "paid collection" status, which is better than "unpaid" but still a negative mark.
Option 3: Payment Plan
If you're trying to go back to the original light company (the one you owe), they might offer a payment plan. This is especially common if you need them to lift a switch hold.
Warning: Starting a payment plan on time-barred debt can restart the 4-year statute of limitations. Only do this if you're committed to finishing.
What to Do Right Now (Step by Step)
Check for a switch hold first
Before anything else, find out if there's a hold blocking service at your address. Call any light company with your address - they can tell you in 2 minutes. If there's a hold, that's your first problem to solve.
Figure out how old your debt is
Pull your credit report at AnnualCreditReport.com (free). Look for the "date of first delinquency." If it's been more than 4 years, they can't sue you. If it's been more than 7 years, dispute it to get it removed.
Get your lights on today with pay-as-you-go
If you need lights now, don't wait. Pay-as-you-go companies don't check credit or the NCTUE database. Start with $40-75 and have power the same day. You can deal with old debt later.
Decide if you even need to pay the old debt
Harsh truth: paying old collections doesn't help your credit much. It changes from "unpaid" to "paid collection" - still a negative mark for 7 years. Only pay if you need to clear a switch hold or want to go back to that specific company.
If you pay, negotiate first
Never pay full price on old collections. Offer 30-40% as a lump sum. The older the debt, the more leverage you have. Get everything in writing before you send a dime.
Common Situations (And What to Do)
"I owe my old light company but I'm moving to a different city"
The debt follows you, not your old address. Light companies in your new city will see it in NCTUE. They'll probably want a deposit, but they have to give you service. If you don't want to deal with deposits, go pay-as-you-go.
"My ex left a light bill at our old place"
If the account was in their name, you're not legally responsible. If there's a switch hold on a new place you're moving into because of your ex's debt, fill out a New Occupant Statement with your lease. You shouldn't have to pay someone else's bill.
"I never got a final bill - it just showed up in collections"
Light companies are supposed to send final bills. File a complaint with the PUCT at 1-888-782-8477. The administrative error gives you leverage in negotiations - mention it when you call the collection agency.
"I disputed the amount but they sent it to collections anyway"
If you had a legitimate, documented dispute, the light company may have violated PUCT rules. File a formal complaint. They have to prove the debt is valid. If they can't, they have to correct it - and potentially remove it from collections.
Frequently Asked Questions
Can I get lights if I owe another light company?
Does old light bill debt show up when I apply for new service?
How long can collectors come after me for old light bills?
Will paying old debt improve my chances of getting lights?
Can I negotiate old light bill debt?
What if I dispute the amount I supposedly owe?
Does moving to a different part of Texas erase my old debt?
What if the debt is from someone else who lived at my address?
Consumer Advocate
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This guide is for informational purposes only and does not constitute legal or financial advice. For debt disputes or legal questions, consult an attorney. For official electricity rules, visit the Public Utility Commission of Texas. NoDepositLights.com is powered by Compare Power (PUCT License BR190020).
