More stress over credit management
Complaints about credit management issues rose sharply in 2008/09, with a total increase of 117% across the categories of internet, landline and mobile phones.
This is concerning when more and more consumers are being affected by the uncertain economic times. The main causes of complaint in this area were that service providers:Mobile service problems?
- failed to warn customers before they suspended or disconnected their service
- continued to pursue customers for a debt when the debt was legitimately being disputed
- suspended or even disconnected services in circumstances where the relevant debts were being disputed
- did not have adequate systems or tools in place to help customers monitor their usage of services, so they could avoid financial over-commitment
- listed debts with credit reporting agencies despite knowing that the debt was being disputed, or did so without warning customers beforehand, or
- refused to negotiate payment arrangements with customers claiming hardship.
This trend continued in figures for the September 2009 quarter, which show credit management accounting for almost 10% of all complaints in that period. More mobile phone customers appear to experience problems with credit management than internet or landline customers, with mobile services accounting for just under half of all credit management issues. Financial over-commitment on the part of mobile phone users is the most common type of credit management complaint in recent months. In light of the enthusiastic take-up of smart phones notwithstanding economic downturn pressures, this picture is perhaps not surprising.
The most common cause for credit management complaint from landline customers in the September quarter was when they claimed suppliers failed to give adequate notice before suspending or disconnecting a service for non-payment. The TIO has been able to help many people who have come to us reporting the problems listed above, and consumers should be aware that their service providers should adhere to rules in the Telecommunications Consumer Protection (TCP) Code if they are considering credit management.
To look at the entire TCP Code, go to www.commsalliance.com.au/Documents/Documents/codes/c628.