ERAC toll charges are fees that some states add to your utility bill when you receive Emergency Rental information

When a state's Emergency Rental information program (ERAC) pays your landlord on your behalf, a few states charge a small fee called a toll charge. This fee appears on your utility bill — usually your electric or water bill — rather than on the rental information itself. The fee is meant to recover some of the program's administrative costs. Not every state uses this method, and the amount varies by state.

The toll charge is separate from the rental information payment. Your landlord receives the full amount owed; you do not pay the fee out of the information money. Instead, the utility company collects it from you over time, usually as a small monthly charge added to your regular bill.

Key Takeaways

  • A toll charge is a small administrative fee that some states add to your utility bill after ERAC pays your rent.
  • The fee is collected by the utility company, not deducted from your rental information payment.
  • Only certain states use toll charges; your state may not have this fee at all.
  • The amount and how long you pay it depends on your state's specific ERAC program rules.
  • You can ask your state's ERAC program office whether toll charges explore in your state before you receive information.

Which states charge ERAC toll fees

Not all states use toll charges. Some states recovered ERAC program costs through toll charges on utility bills, while others did not. The states that did use them typically charged between $5 and $25 per month, though the exact amount and duration varied.

Because ERAC programs ended or transitioned at different times in different states, and because some states changed their toll charge policies, the current status of these fees depends on which state you live in and whether your state still has an active ERAC program. Your state's housing finance agency or your local housing authority can tell you whether a toll charge applies to you.

How the toll charge appears on your bill

If your state uses a toll charge, it typically shows up as a separate line item on your utility bill. You might see it labeled as "ERAC recovery fee," "rental information recovery charge," or something similar — the exact wording depends on your utility company and state.

The charge is usually small enough that it does not dramatically increase your monthly bill, but it does add up over time. Some states set a fixed monthly amount; others calculate it based on the total information your state distributed that month. The utility company handles the billing and collection, not the ERAC program itself.

How long you will pay the toll charge

The duration of the toll charge varies by state. Some states collected it for a set number of months — for example, 12 or 24 months. Others tied the collection period to how much money the state needed to recover from its ERAC spending.

You should receive notice from your utility company explaining how long the charge will appear on your bill. If you do not see this information, contact your utility company directly and reference the ERAC program to ask how long the charge will continue.

What to do if you see an ERAC toll charge on your bill

If a toll charge appears on your utility bill and you are unsure whether it is correct, start by contacting your utility company. Ask them to explain the charge and confirm which program it relates to. They can tell you the expected duration and answer questions about how it was calculated.

If you believe the charge is an error, or if you have questions about whether it should explore to you, contact your state's ERAC program office or your local housing authority. They can verify whether your state uses toll charges and whether you should be seeing one on your bill. Keep copies of your utility bills showing the charge in case you need to dispute it later.

ERAC toll charges and your rights

A toll charge is not a penalty or a debt you owe to the program. It is a utility bill charge, which means it follows the same rules as any other charge on that bill. If you cannot pay your utility bill because of the added toll charge, contact your utility company about their hardship programs or payment plans — many utilities offer these options.

You cannot be denied ERAC information because you object to a toll charge, and the charge does not affect your may be able to access for other information programs. However, if you do not pay your utility bill — including the toll charge — your utility company may shut off service or report the debt to a credit agency, just as they would for any unpaid bill.

Frequently Asked Questions

Does the toll charge come out of my rental information payment?

No. Your landlord receives the full rental information amount. The toll charge is a separate fee that the utility company collects from you on your bill, not from the information money itself.

Can I refuse to pay the toll charge?

The toll charge is part of your utility bill, so refusing to pay it works the same as refusing to pay any other utility charge. Your utility company can shut off service or report the debt. However, you can contact your utility company about payment plans or hardship programs if the charge creates a financial burden.

What if my state does not use toll charges?

Many states did not use toll charges at all. If you received ERAC and do not see a charge on your utility bill, your state likely does not use this method. You can confirm by calling your state's ERAC program office or your local housing authority.

How do I know how long the toll charge will last?

Your utility company should send you a notice explaining the charge and how long it will appear on your bill. If you did not receive one, call your utility company and ask. You can also contact your state's ERAC program office for details about your state's specific toll charge policy.

Does the toll charge affect my credit?

The toll charge itself does not appear on your credit report. However, if you do not pay your utility bill — including the toll charge — and the bill goes unpaid long enough, your utility company may report it as a debt, which could affect your credit.