Complain about your telco, and have them pay you $50

Stuart Corner
Friday, 23 October 2009 11:24

IT Policy - Government Tech Policy

The telecomms consumers lobby group - ACCAN, has ramped up its assault on the telecoms industry with demands that telcos compensate consumers who have to resort to the Telecommunications Industry Ombudsman to resolve issues with telcos.

"We think it's only fair that a $50 compensation payment should apply to consumers affected by poor customer service, ACCAN CEO, Allan Asher said. "This payment would be an incentive for telcos to get it right in the first instance and recognises the real costs of giving customers the run around."

ACCAN's demands follow release by the TIO of its annual report showing very substantial increases in problems with telco service providers referred to it by consumers. The TIO responded to 230,065 complaints from consumers and small businesses in 2008-09, a 54 percent rise on 2007/08.

Asher said the results demonstrated "the failure by the telecommunications industry to meet acceptable standards of service...The only conclusion that can be drawn is that telecommunications companies just do not care about consumers.

According to the TIO, "Complaints about issues surrounding customer service and complaint handling almost doubled, with the main concern being incorrect or inadequate advice by the service companies. Many consumers said their providers had failed to follow through on promises."

Asher said: "Dramatic increases in complaints with billing (up by 115 percent), customer service (up by 72 percent) and credit management (up by 117 percent) show the sector cannot regulate itself." He called on the minister to legislate for the enforcement of consumer service standards, noting that the minister himself had flagged this option. "In March the communications minister threatened the industry saying he was prepared to implement regulatory measures to improve customer service and consumer protections if the industry did not rise to the challenge. We now call on him to act decisively by incorporating into the Telecommunications (Consumer Protection and Service Standards) Act 1999, provisions of the Telecommunications Consumer Protections Code and appropriate performance benchmarks for their enforcement."

Asher also singled out the Priority Assistance Service, saying "The increase in complaints means the lives and welfare of vulnerable consumers are being placed at risk."

Priority Assistance is designed to help people with diagnosed life-threatening medical conditions who depend on a reliable, home telephone service to be able to call for assistance when needed. Such people are entitled to faster connection and fault repair and a greater level of reliability.

The TIO reported that complaints almost doubled. However, at 332 they account for less than 0.1 percent of total, but within this number complaints about delays in service connection and fault rectification, respectively tripled and quadrupled on the previous year.