Portland agencies end unfair returned payment fees

Four agencies in Portland will stop charging returned payment fees to residents and customers. This decision comes after an investigation by the city ombudsman's office. The investigation revealed that these fees unfairly impacted Black, Latino, and low-income individuals. The Water, Fire, Revenue, and Transportation bureaus have been charging fees of up to $35 when customers do not have enough funds during transactions. The Water Bureau learned about the issue after a customer complained about being charged because of outdated billing information. The investigation found that the Water Bureau spent more money on collecting these fees than it earned. In 2023, it lost $72,000 from these efforts, increasing costs for utility users. Deputy Ombudsman Andy Stevens stated that these fees did not align with the city’s goals for equity and were an inefficient use of resources. The Water Bureau will stop charging these fees starting July 1. It will also credit over $10,000 back to customers who were overcharged. The Fire and Transportation bureaus will also eliminate the fee on the same date, while the Revenue Bureau has already ended the practice.