TIO gets more clout to deal with big $$$ complaints

Stuart Corner
Thursday, 08 April 2010 15:51

IT Policy - Regulation

The Telecommunications Industry Ombudsman (TIO) has been given more clout to resolve consumer complaints against telcos: it can now make decisions on disputes involving sums of  $30,000, three times its current limit.

Such decisions will be legal binding, and the TIO will also be able to make recommendations in disputes involving up to $85,000; the current limit is $50,000. The new limits will apply to complaints lodged after 1 May and the TIO will review them in 12 months.

The limit will not preclude the ombudsman from investigating and helping to resolve disputes involving sums higher than $85,000.

Acting Ombudsman, Simon Cleary, said the increases were needed because the number of complaints involving large sums had increased whereas the limits had not been altered since the TIO scheme's inception in 1993.

"During that time the range of telecommunications services had expanded dramatically and the capacity for consumers to incur larger debts had increased.

"There is a general community expectation that the TIO can help consumers resolve disputes within our jurisdiction by virtue of the nature of the complaint,'' he said.

"Consumers would not understand why two complaints about the same issue - one involving $8,000 and the other $12,000 - were not both able to receive the same level of assistance from the TIO."

The TIO provided a list of real horror stories to demonstrate the need for the increased limits. These included:
- a bill for close to $50,000 for mobile data download use;
-  a bill for close to $215,000 for excess Internet usage;
- a family member with a drug addiction being able to take out multiple handsets with a provider, incurring $40,000 in contract fees;
- a person from a non-English speaking background entering into multiple mobile phone contracts for friends and relatives, incurring a debt of close to $105,000;
- a complainant claiming he did not receive his mobile telephone bills for several months and when a bill finally arrived it was for close to $145,000; and
-a bill for close to $55,000 for excess internet usage.