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Telstra set to refund 10,000 customers
Ten thousand past and present Telstra customers are entitled to a refund due to being overcharged a total of $2.5 million.
Telstra set to refund 10,000 customers
Ten thousand past and present Telstra customers are entitled to a refund due to being overcharged a total of $2.5 million.
The overcharging, averaging of $231 per customer, occurred between February 2008 and February 2020 when customers were provided with an interim service (usually a mobile phone) during delays to their connection or repair of landline services.
Telstra self-reported the issue to the ACMA and explained that the billing error resulted from mistakes made when introducing a new customer relationship management system in 2008.
CMA chair Nerida O’Loughlin said the errors were a clear breach of the Telecommunications Consumer Protections (TCP) Code.
“The amount charged for an interim service must not exceed what a customer would have been charged under their existing or requested landline service.
“Overcharging can potentially lead to financial difficulties for affected customers, which is why the ACMA considers accuracy in billing practices to be an important consumer protection.
“For Telstra to allow an issue like this to go unnoticed for such a long time and impact so many customers is simply unacceptable,” she said.
Ms O’Loughlin told the telco they must have adequate systems in place to stop this from happening again.
“If telcos are relying on IT systems to meet their regulatory obligations, then they must have appropriate testing and assurance processes in place to ensure compliance,” she said.
ACMA acknowledged that once the error was identified, Telstra moved reasonably swiftly to fix the problem.
It acknowledged that Telstra also took the appropriate steps to address the issue, including refunding affected customers, and has committed to removing all ongoing charging for interim services to prevent the problem from occurring again.
Any further non-compliance could lead to significant consequences for Telstra, with penalties of up to $250,000 for failing to comply with the ACMA direction to comply with the TCP Code.
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