A breach of the industry’s consumer protection code was committed by Telstra when it improperly took action against 70 customers who had financial hardship arrangements as a result of legacy IT system faults.
Telstra has been ordered by the Australian Communications and Media Authority (ACMA) to abide by the Telecommunications Consumer Protections code.
While a financial hardship plan is in effect or being considered, carriers are prohibited by the TCP code from suspending or disconnecting services or starting debt collection procedures.
Acting ACMA chair Creina Chapman stated, “With the strains brought on by the Covid-19 pandemic and rising cost of living, it’s more critical than ever for telcos to support their customers, particularly those in tough circumstances.”
The ACMA has stated that protecting telco customers who are struggling financially is a compliance priority and that all telcos can anticipate increased monitoring of their business practises in this area.
Telstra might face serious repercussions if it continues to violate the TCP code, including fines of up to $250,000 for disobeying.
“Our financial hardship policy is designed to support our customers and keep them connected during difficult times,” Telstra customer service executive Kate Cotter told iTnews. 70 clients who had a financial hardship agreement with Telstra over a three-year period were subject to credit management action.
“We apologise that our processes let some consumers down, but the vast majority of these issues were swiftly detected and corrected.
We are well on our way to ensuring that this is a thing of the past by replacing these antiquated systems with seamless digital experiences. The problem was caused by older systems not synchronising properly. While we finish our system revamp, we have put in place IT solutions and routine manual checks to halt additional problems.
