Report: American Utility Management
Reported By: Douglas (Santa Clara California)
USA          
American Utility Management, AUM - Why I Don't Trust American Utility Management Santa Clara, California
... Summary and Conclusions
       
     1Author     0Consumer     0Employee                    American Utility Management
P.O. Box 4957
Oak Brook Illinois 60522
United States of America
Phone:  8665201245
Web Address: 
Submitted:  Saturday, August 15, 2009
Last posting: Monday, August 17, 2009      
 Part 1. Text of my original complaint to BBB, submitted months after getting nowhere with AUM
The 
Better Business Bureau of Chicago & Northern Illinois
330 North Wabash Ave., Suite 2006
Chicago, IL 60649
31 March 2009
Dear BBB,
     I am bringing to your attention a list of complaints against the following company:
                             American Utility Management
                             P.O. Box 4957
                             Oak Brook, IL 60522-4957.
I  have been striving since last Autumn to get answers to a number of  questions, the most serious of which concerns the integrity of the 
bookkeeping at AUM’s bill payment center in Los Angeles, CA. For your reference, copies of four letters are included as attachments:
• Letter dated December 19, 2008 from Mr. Jeff Peterson to Douglas Krajnovich
• Letter dated December 24, 2008 from Douglas and Virginia Krajnovich to AUM 
• Letter dated January 1, 2009 from Douglas Krajnovich to Mr. Peterson 
• Letter dated February 7, 2009 from Douglas and Virginia Krajnovich to AUM
NOTE: Mr. Peterson is Senior Vice President and General Counsel of AUM.
According to Ms. Parnella Williams, head of 
Customer Service  of AUM, all of my complaints were referred to Mr. Jeff Peterson. I left  phone messages for Mr. Peterson on three separate occasions (Jan. 29,  Feb. 27, and Mar. 20). He never returned my calls.
Complaint #1Mr.  Peterson’s letter of Dec. 19, 2008 states “you may manage your account  online at no cost.” To a simple-minded person being like me, 
managing  my account involves 3 simple steps: reviewing my bill, deciding what to  pay, and paying. There is, in fact, no way to pay one’s monthly bill  online at no cost. The only on-line bill pay option involves what AUM  euphemistically refers to as a “Convenience Fee.” This so-called  Convenience Fee would make Shylock blush. 
At $7.50, it is even larger  that the so-called Late Payment charge if you pay by mail to the Los  Angeles address and someone there (or in Oakbrook?) decides to mark it  “late.” Mr. Peterson has refused to acknowledge or correct this  misrepresentation of fact. As to why AUM calls this a Convenience Fee, I  can only guess. Perhaps they are fans of George Orwell’s Nineteen  Eighty Four where the “Ministry of Love” was where prisoners got taken  to be tortured. Or perhaps they call it a Convenience Fee because it is  very convenient for them, not for the unwilling captives of Third Party  Billing.
Complaint #2I have mailed all of my AUM  bills on or before the due date. Yet I have been charged numerous late  fees by AUM. Unlike the Internal Revenue Service, or my telephone  company (AT&T), or my electric provider (City of Santa Clara), AUM  Customer Service informed me by telephone that they neither record nor  respect the postmark date as evidence of on-time payment. Further, they  do not have a grace period. Further, mail delays are entirely my  responsibility. Finally, there is no local address where I can 
pay my bill  in person. Someone (or something) in Los Angeles evidently decides when  my bill is “received,” but that someone or something is a closely  guarded secret. Despite repeated requests, AUM has refused to give me  the name, address, and phone number of any person working at their Los  Angeles bill payment center. One 
Customer Service rep  from the Oakbrook office told me on Jan. 2, 2009 that “no human beings”  work at the Los Angeles office and then hung up on me. Another told me  that human beings work there but they are not AUM 
employees. She would not give me a name or a phone number.
Experiment #1 
As follow-up to Complaint #2, I  performed an experiment. I mailed one of my payments by  signature-guaranteed Express Mail to see if anyone would sign for it. I  now have the name and handwritten signature of one person who works at  the Los Angeles bill payment center. I also have proof that my AUM  ledger entry for that month was post-dated by 2 days from the Express  mail delivery date. 
Experiment #2Since I happen to be a  scientist, I know the value of repeating an experiment to make sure the  data is valid and not just a fluke. Therefore, I mailed another payment  by Express mail. I now have the name of a second person who works at the  Los Angeles bill payment center. My AUM ledger entry was again  post-dated by 2 days.
Complaint #3Without letting on that I had  performed Experiments #1 and #2, I wrote to Mr. Peterson again on Feb.  7. The final sentence of that letter is the most important: “I expect my  ledger to be vouched for and signed by your President, 
Chief Financial Officer,  or independent auditor since I have serious concerns about the  bookkeeping at 4 REGULUS 90060.” In one of my voicemails to the  unresponsive Mr. Peterson, I read this sentence over the phone and  demanded a written response.
 Seven weeks have elapsed. No response.  Evidently no one at AUM is willing to stand by their ledger if it means  signing their name to it.
Complaint #4Since Mr. Peterson is missing in  action, I pressed Ms. Parnella Williams on Mar. 12 for the name and  telephone number of AUM’s Chief Financial Officer. She refused to give  it to me and referred me once again to you know who. I have more  complaints besides these but these are the most significant. What I  expect from AUM and the BBB: 1. An independent auditor should conduct a  thorough and impartial investigation of the Los Angeles bill payment  center and the results of the audit should be made public. 2. AUM should  explain to me in writing how the records of the Los Angeles bill  payment center are converted into the AUM ledger. 3. AUM should correct  past wrongs by revising the ledgers of all AUM 
customers  paying their bills through the Los Angeles bill payment center. Late  fees already paid should be refunded (and late fees not paid should be  erased) if the number of days late according to the current ledgers is  than or equal to four. 4. All AUM customers should be allowed to pay  their bill with their rent, and with the same due date and late date as  their rent, without incurring any “late fee” or “convenience fee.” 5.  Upon request, AUM and the apartment managers should agree to provide  actual copies of the primary utility bills from each of the primary  utility providers to any resident, along with the actual formulas used  to calculate their share of each bill, including any fees or overhead  that are in addition to their share of the primary utility bills, and  who collects such fees and overhead, if any. 
Sincerely,
Douglas K
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TO BE CONTINUED...