Ten telcos have been formally warned by the Australian Communications and Media Authority (ACMA) for not following new rules designed to protect customers struggling to pay their internet and phone bills.
Under the Financial Hardship Standard, which came into effect in March this year, telcos must establish a payment assistance policy for customers experiencing financial difficulties and they must clearly publish the policy on their website.
Following an audit of 48 telcos by the ACMA, ten were investigated and found to have not published all of the required information to be compliant with the rules.
The telcos in breach were Bendigo Telco Ltd, Business Service Brokers Pty Ltd trading as TeleChoice, Dreamtilt Pty Ltd, Flip TV Pty Ltd, Nu Mobile Pty Ltd, Pennytel Australia Pty Ltd, Telco Pay Pty Ltd trading as Moose Mobile, TelcoPlus Pty Ltd, Telecom West Pty Ltd and Uniti Retail Pty Ltd.
Common failings included payment assistance policies not being clearly available, and not including a required statement that customers seeking short term assistance or who are a victim of domestic violence are not required to provide evidence to support their application.
ACMA member and telco consumer lead Samantha Yorke said telcos have an obligation to support customers going through difficult financial circumstances by ensuring the required information is available online.
"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," Ms Yorke said.
An ACMA report released in May 2023 showed that 2.4 million Australian adults experienced financial difficulty or had concerns relating to their telco bill in the previous 12 months.
"Payment assistance policies provide an avenue for telcos to put financial management processes in place so these customers can stay connected during difficult circumstances.
"We are closely monitoring telcos to make sure they are following the rules and will not hesitate to act where non-compliance is identified," Ms Yorke said.
Ms Yorke noted that all 10 telcos moved quickly to update their policies during our investigations.
If any of the telcos were to breach the Financial Hardship Standard again, it could lead to more significant enforcement actions including financial penalties of up to $250,000 per contravention.
