Telcos warned for failing customers in financial strife

Under financial hardship standards that came into effect in March, telcos must proactively identify customers and prioritise keeping them connected to services.

But in an audit of 48 telcos, the communications watchdog found 10 of them were not complying with the rules.

The 10 at-fault companies were formally warned by the Australian Communications and Media Authority, which said telcos had an obligation to support customers going through difficult financial circumstances.

"With many people struggling to pay their bills, it's important that telcos clearly inform customers of their right to apply for financial hardship assistance and the options and support services available," ACMA telco consumer lead Samantha Yorke said.

ACMA found telcos commonly failed to make their payment assistance policies clearly available online, as required by the regulations. 

Another common failing was not providing a statement informing customers who are seeking short-term assistance or are a victim of domestic violence that they are not required to provide evidence to support their application.

"Payment assistance policies provide an avenue for telcos to put financial management processes in place so these customers can stay connected during difficult circumstances," Ms Yorke said. 

"We are closely monitoring telcos to make sure they are following the rules and will not hesitate to act where non-compliance is identified."

The telcos found to have breached the rules were Bendigo Telco, TeleChoice, Dreamtilt, Flip TV, Nu Mobile, Pennytel Australia, Moose Mobile, Telcoplus, Telecom West and Uniti Retail.

All 10 telcos moved quickly to update their policies, but they could face fines up to $250,000 if they breached the standards again, ACMA said.

Almost 2.4 million Australian adults said they experienced difficulties or concerns about paying their telecommunications bills, an ACMA report found in May 2023.

Australian Associated Press