Mojo Power forcing me to pay a bill yet they owe me credit

LMatthew B on 19/07/2023 - 09:35

Mojo Power were forced to discontinue providing electricity to customers on 15th June 2023.
I received my final bill 26th June for approx $130.
However only 3months prior on 28th March I paid $360 for an annual energy pass.
So essentially I am owed around $285 of that (approx 9.5months)
$285 - $130 = $155 credit owed
It seems incredibly unfair that with inflation/interest rates, high electricity prices that this occurs to a family man with a wife not working looking after our 2 adolescents.
Mojo Power have now gone to liquidators and debt collectors. If I don't pay their bill despite being owed money then the debt collectors could put a bad mark on my credit rating.

Pay the bill and cut my losses or is there some form of action I could take?

I'm sure there are many others who were Mojo customers who may be in a similar situation.

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Comments

  • JimB on 19/07/2023 - 09:53
    +10

    Have you called them?

    I wouldn't pay.

  • Muzeeb on 19/07/2023 - 09:54
    +24

    that this occurs to a family man with a wife not working looking after our 2 adolescents.

    I heard Mojo are only targeting family men, with a wife not working looking after 2 adolescents with this scam.

    • FiDad on 19/07/2023 - 10:31
      +14

      As a family man with 2 adolescents i had my wife working full time just to ensure Mojo does not target me. Now that they are bankrupt i guess my wife can stop working

    • Protractor on 19/07/2023 - 10:48
      +3

      It's just a play on - "you can't do this to me, I'm an American".
      Always good for a larf.

  • PissLUR on 19/07/2023 - 10:02

    What does the annual pass cover?

    • Matthew B on 19/07/2023 - 10:29

      The pass was a pre-payment for a 12month plan/supply.
      In return I was credited $40 every month on my bill

      • PissLUR on 19/07/2023 - 10:54

        Did you get the $40 credit on the current bill?

        • Matthew B on 19/07/2023 - 11:43
          +1

          Yes I did get $40 credit as per any other month.

  • KaTst3R on 19/07/2023 - 10:05
    +6

    I suspect how it works is that anything that is owed to them, the administrators will try to recover first (i.e. bills, accounts receivables, etc), then whatever leftovers are distributed in the hierarchy of creditors. Customers (unsecured creditors) are almost at the bottom of the chain just before equity holders, so it is likely you might not see much of your credit.

    • Matthew B on 19/07/2023 - 10:35

      Thankyou

      • KaTst3R on 19/07/2023 - 10:37

        From a normal corporate law perspective, there might not be much solution for you. But try to see if the state energy governing body or fair trading can assist. Sometimes to protect the general public, they may try to intervene. Look at this route. All the best mate.

  • Tech5 on 19/07/2023 - 10:07
    +2

    So it looks like the energy pass fee does not directly contribute to your bills right? It gives you a smart meter and "better" energy rates. As what is essentially an unsecured creditor, I would think you have lost that payment since their liquidation. It is like a "membership" fee.

    However, you will still need to pay for any used electricity.

  • djsweet on 19/07/2023 - 10:12
    +1

    Tell em to take it out of what they owe you. I wouldn't be paying a cent.

  • GordonD on 19/07/2023 - 10:16
    +8

    Posters here may not understand what happened.

    Mojo went broke. It was wound up by the Supreme Court as of 17 June 2023. It is out of business.

    So at this point in the legal process the OP on one hand is an unsecured creditor who is owed money by a bankrupt company, and on the other hand owes money to the same company as a customer. He has to pay what he owes. He may get something back later out of what the company owes him, depending on what assets the company has, and whether other people the company owes money have a higher legal claim to it.

    Sorry, OP, this is the sort of unfaIr thing that happens when companies go bankrupt. Pay up. Not paying up can and will do you more financial damage.

    • burningrage on 19/07/2023 - 10:23
      +4

      Yea I hate to break it to OP but there is no set-off arrangement when it comes to liquidation.

      What you are owed will be subject to order of priority payment (and you will get $0 in all likelihood despite people say you may get something) but what you owe them is payable immediately (because they are going to use that money you pay to settle their debts with higher priority creditors).

      It isn't fair I know but it is what it is. This is the state of the economics people voted on.

    • JimmyF on 19/07/2023 - 10:23

      Ahhh thanks for filling in the blanks that the OP missed.

    • Matthew B on 19/07/2023 - 10:31

      Yes, thankyou for clarifying.
      That's what I'm thinking, as unfair as it is by not paying I may be forced to pay debt collector fees and a mark on my otherwise good credit history.

  • Baysew on 19/07/2023 - 10:27
    +1

    This is from the Victorian Essential Services Commission (which I didn't know existed) there maybe something similar for NSW.

    Disputed bills
    If you were disputing a bill from the failed retailer, you should contact them directly. They or their administrator should have processes in place for handling unresolved customer complaints.

    If you are dissatisfied with their response, contact the Energy and Water Ombudsman (Victoria) (EWOV) on 1800 500 509.

    • Matthew B on 19/07/2023 - 10:34

      I have contacted Mojo.
      They have pretty much said pay this bill or the debt collectors will come after you.
      The liquidators will contact me at a later date regarding the money they owe me.
      Likely I will not see a cent back and the formers owners are on a tropical island having a wonderful holiday.

      • screensaver on 19/07/2023 - 11:05
        +3

        I would call the Ombudsman

        • MITM on 19/07/2023 - 15:57

          Exactly this - that's what you pay taxes for - public servants to recover your money.

          Don't pay the bill - unlikely they will chase it anyway.

  • brendanm on 19/07/2023 - 11:24
    +2

    Did you pay the membership fee by credit card?

  • Drakesy on 19/07/2023 - 12:16
    -1

    It seems incredibly unfair that with inflation/interest rates, high electricity prices that this occurs to a family man with a wife not working looking after our 2 adolescents.

    You were doing so well until you started fishing for sympathy…

    Also have you read the T's & C's of the energy pass, sounds like it's not an upfront payment but more a membership to lock in rates.

    At the risk of sounding a little bit like a Karen…

  • Matthew B on 19/07/2023 - 13:21

    I sent an enquiry through to https://www.ewon.com.au/
    Energy and Water Ombudsmen NSW
    Will wait and see their response.

    I'm sure there are others who may read this forum/article who are also affected by this Mojo Power going under.

  • samfisher5986 on 19/07/2023 - 14:24

    There's no reason to assume Mojo is in the right.

    A debt going to debt collectors does not automatically make the debt collector in the right.

    The liquidators want your money, you want their money. Unless they take you to court, there is nothing to say they are correct.

    Personally I would just tell them you believe they were trading while insolvent because its pretty obvious they were (In my opinion, not legally) if they were taking yearly subscriptions at that point…

    • garetz on 19/07/2023 - 15:44

      Right or wrong is irrelevant, all they need to do is prove a debt exists by having a bill of sale, once that is shown they can enforce the debt.

      A credit is irrelevant when the company has gone into liquidation.

      If they do send it for debt collection, it could destroys ops ability to get credit cards or get a loan, for such a small account its not worth the risk.

      • samfisher5986 on 19/07/2023 - 15:52

        A debt collection can be damaging if its correct or fake. Yes sometimes even a wrong debt collection will end up being paid simply to avoid the risk/fuss.

        What you are forgetting is that by your logic, all service companies can use creative accounting to make debts by simply ignoring their own liabilities. This doesn't mean its a real debt but as I said… sometimes you pay up even if its not real.

        • garetz on 19/07/2023 - 16:57

          a credit is not a liability after the company has liquidated, it is a unsecured credit.

  • jhaley3180 on 20/07/2023 - 07:42
    +4

    I would do two things.
    1. Pay the bill owed.
    2. Contact my credit card provider and seek a dispute on the payment of the annual energy pass on the basis that you have not received the good/service as described.

    I had the misfortune of having airline tickets with an airline that collapsed back in 2009. I had purchased the tickets 5 months prior. I submitted a dispute as there was almost zero chance I'd get anything back as an unsecured creditor. Amex upheld my dispute and I received my entire amount back.

  • brad1-8tsi on 20/07/2023 - 14:13

    this occurs to a family man with a wife not working looking after our 2 adolescents.

    A a single man with grown up kids is it OK if it happens to me? Everyone has a sob story.

    Why not make a claim for the money "owed" to you? Personally, I'd not pay the bill and roll the dice on my credit rating.

    BTW: I was a DC Power Co shareholder. $5000 up the poop chute. Take a breath, move on.

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