In general, under New Jersey law, utilities are exempt from damage caused by failure of their equipment. Home insurance then covers the losses, after the deductible. But if a consumer can show negligence on the part of the utility, then the utility is liable.

If the wires were in a dangerous condition for two years, and if these surges in fact happened several times without being properly fixed, you have a good chance of showing negligence.

If the utility does not resolve the situation quickly, consider filing a suit in Small Claims Court to recoup your losses. But be sure to make it clear in the suit that you are suing because the utility negligently allowed a dangerous situation to continue, not because of routine failure of equipment.

Debts not cleared

Dear Consumer Action:

I have huge debt on my credit cards, which I cannot pay. In August 2007, I hired by Internet the company Clear Your Debts LLC, of Austin, Texas.

The company was supposed to consolidate my debt and said it would be able to arrange for me to pay 30 to 40 percent of my debt. I agreed and have paid the company $6,000 over 15 months but have recently received court summonses from my creditors.

The company said it was unable to make agreements with the creditors, but that's what I paid them for.

I have stopped paying Clear Your Debts and have requested, but not received, a refund. How can I get my money back? - S.H., Barnegat

Clear Your Debt has an unsatisfactory rating from the Better Business Bureau, and a Web search uncovered other consumer complaints similar to yours.

Consumers complain to the BBB that they are not notified that they are actually enrolled in the company's debt-settlement program. They are told they are merely filling out applications for the company to review and will be informed whether they qualify or not. Consumers say monthly debits are made from their checking accounts without their consent.

Consumers have also told the BBB they are concerned about lack of communication between the company and their creditors. They say that even though monthly debits are made from their checking accounts, their creditors continue to call them, demanding payment. Many state they have been threatened with legal action or even sued because of the company's failure to provide promised services.

The company responds by stating its contract features a disclaimer that says even when the company does everything exactly as they have indicated they would, a creditor might still sue the client.

Consider filing a complaint against the company with Texas consumer authorities, who may be able to help you get a refund or add you to any lawsuit the state may bring. Write to:

Austin Regional Office, Texas Office of the Attorney General, P.O. Box 12548, Austin, TX 78711-2548. You also can file a complaint online at:

www.oag.state.tx.us

The Federal Trade Commission warns consumers against hiring others to clear their debts, and says scams are common in the industry. It recommends instead that you take steps to negotiate with creditors yourself. More information on how to do that is available at:

www.ftc.gov/bcp/edu/pubs/
consumer/credit/cre19.shtm

Consumer Action will respond to each properly submitted letter about a problem or question, either in this column or by letter or phone. Letters must include copies - not originals - of all relevant documentation and a name, address and phone number at which you can be reached. Send letters to: Consumer Action, The Press, 11 Devins Lane, Pleasantville, NJ 08232.