Powered by momentummedia
nestegg logo
Powered by momentummedia
nestegg logo
nestegg logo

 

 

Save

Telstra set to refund 10,000 customers

  • November 12 2020
  • Share

Save

Telstra set to refund 10,000 customers

By Cameron Micallef
November 12 2020

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

Telstra set to refund 10,000 customers

author image
  • November 12 2020
  • Share

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

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.

Advertisement
Advertisement

“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.

Telstra set to refund 10,000 customers
Telstra set to refund 10,000 customers
nestegg logo

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on Twitter for the latest updates
Rate the article

About the author

author image

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

more on this topic

more on this topic

From the web

Recommended by Spike Native Network

More articles

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.