MyCRA Specialist Credit Repair Lawyers

Tag: Telcos

  • Slap on the wrist for Telstra under TCP Code

    global roamingTelstra customers were overcharged over $30 million on global roaming charges between 2006 and 2012 – and under the new Telecommunications Consumer Protection Code (TCP Code), the telco giant has been issued a formal warning from the Australian Communications and Media Authority rather than a fine.  Is the TCP Code effective in asserting real power over telcos? This is an issue we have been and will be watching closely, as it is of great importance to many of our credit repair clients. We examine this case in detail.

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repair and www.fixmybadcredit.com.au.

    Customer complaints about telcos are astoundingly voluminous – with recent statistics showing there were 22,918 mobile complaints to the Telecommunications Industry Ombudsman in the January-March 2013 quarter alone.

    The TCP Code, overseen by the ACMA was devised in order to encourage better behaviour amongst Australian telcos who were doing pretty poorly in many areas according to the ACMA’s report into their extensive telco inquiry, Reconnecting the Customer.

    Since the new TCP Code was registered in September 2012, the ACMA has been checking the compliance of telco providers with key new consumer protections – including new advertising rules, the requirement for Critical Information Statements and the requirement for providers to submit their own compliance assessments to industry body Communications Compliance.

    The ACMA reports it has:

    Made over 330 inquiries with providers about TCP compliance issues

    Issued 8 Formal Warnings and

    Given 3 Directions to Comply.

    The Telstra case is a significant example. The case in a nutshell, was reported by Adam Turner for Brisbane Times:

    Australian Communications and Media Authority has let Telstra off with a warning after the telco waited three years to investigate a billing error through which Australians travelling abroad were overcharged by about $30 million for services. About 260,000 customers were affected by the error between 2006 and 2012, caused by incorrect data-usage details being passed to Telstra by a data-clearing warehouse used by international carriers. As a result, some Telstra customers paid the 50¢ flagfall fee more than once each time they used mobile data on their phones while travelling.

    Customers raised concerns in 2009 but Telstra failed to investigate the problem until 2012, when it reported it to the ACMA.

    The ACMA report found Telstra in breach of the Telecommunications Consumer Protection Code, as the global roaming billing errors after 2009 were attributable to the telco’s failure to investigate the problem.

    ACMA found Telstra in breach of the consumer code, but it has the power to issue only a warning rather than a fine.

    Some have argued after the final TCP Code was approved by the ACMA, the end result was a fairly watered down Code with no ‘teeth’ to exert real penalties for breaches. In addition, the Australian Communications Consumer Action Network (ACCAN) issued a statement in July criticising the ACMA for not penalising telcos who breach the code.

    “The ACMA investigation shows telcos are in breach of the TCP Code on a daily basis,” an ACCAN spokesman said.

    “We are encouraged to see the ACMA investigating these breaches. However, the regulator’s unwillingness to hand down even the most basic available penalty for confirmed breaches has the potential to create a culture of poor compliance.”

    This may pan out to be largely right, but this Telstra case may not be the one to base that judgement on. The ACMA went into detail in a release to the media about why it chose to only warn the telco:

    The ACMA’s decision on this occasion to formally warn Telstra for the breach took into account the facts that Telstra was not the original cause of the problem; that this was the first time a billing issue of this nature had been investigated under the TCP Code; that Telstra itself reported the matter; and that Telstra appears to be otherwise currently compliant with the relevant parts of the TCP Code 2012. Importantly, Telstra proactively implemented a comprehensive program of compensation that mitigated the harm for affected customers.

    However, it does highlight the culture of difficulty when it comes to customer complaints which was so evident from the ACMA’s original investigation into the behaviour of Australian telcos across the board, and which has been an issue amongst our telco credit repair customers.

    ACMA chairman Chris Chapman said in his statement to the media the situation highlights the need for telcos to take customer complaints more seriously.

    ”Our investigation makes it very clear that all telcos need to listen to their customers who report billing problems and be vigilant about any potential issues with the information provided to them by third parties,” he says.

    The ACMA’s focus over the next quarter will be on checking compliance with the new requirement that telco providers notify customers on included value plans when they have used 50%, 85% and 100% of their included allowance. This was another major complaint coming out of the ACMA’s Reconnecting the Customer report and one which has also impacted the credit files of telco customers.

    We will be watching really closely how this pans out, and reporting on the positive and negative ramifications for consumers and their credit files.

    Image: adamr/ www.FreeDigitalPhotos.net

  • Telcos to step up spend management awareness under TCP Code

    bill shockBILL SHOCK!

    We’ve discussed it frequently. We hear about it frequently as credit repairers. Next month, the Australian Communications and Media Authority (ACMA) is overseeing new guidelines under the Telecommunications Consumer Protection Code (TCP) designed to reduce the instances of bill shock, and hopefully the frequency of credit disputes over bill shock. The new requirements are about to take effect from 1 September. We look at what the new Code requires and what it will mean for consumers.

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repair and www.fixmybadcredit.com.au.

    Botched phone plans and lack of data usage monitoring has in the past left many Australians shell shocked over their mobile and internet bills, with bills so large many can’t pay up or refuse to pay up, leading to an increased rate of defaults.

    Consumers have been confused when it comes to data allowance – particularly on their smartphones, and this was a major focus following the ACMA’s Reconnecting the Customer inquiry – which found there was a real need for improvement in consumer protection in the telco industry in the areas of Critical Information Summaries, clearer advertising and improved complaint handling.

    In the past clients claim they have gone over their allowance really quickly, sometimes without realising it, or the plan they were put on was not appropriate for what they intended to use their mobile internet for. Often they have had great difficulty in cancelling the accounts or coming to a resolution with telcos over these billing issues.

    Sometimes consumers have reluctantly paid the bill, thought the matter was settled, only to find they were defaulted anyway, and others have just refused to pay the bill until they got some resolution. Either way, they have been faced with at least 5 years of bad credit from the episode unless they have been able to make a successful complaint.

    Last year, the Telecommunications Industry Ombudsman (TIO) surveyed its services. It counted 52,231 new complaints about telcos received between January and March 2012. Almost two-thirds were about mobile phone services.

    The TIO reports new complaints about over-commitment caused by inadequate spend controls increased to 4,282 in the January-March 2012 quarter, compared to 2,181 in the same quarter in 2011. In the same periods, new complaints about disputed internet charges increased from 981 to 2,823 (180 per cent).

    “It is well known that more internet browsing and downloads are now done on mobile phones and other mobile devices. With this change in consumer behaviour, we have seen complaints about excess data charges almost treble over the last year,” Ombudsman Simon Cohen said.  “The incidence of these complaints will reduce if consumers are only contracted for services they can afford, and where spend management tools such as notifications and usage meters are accurate and reliable”.

    SPEND MANAGEMENT TOOLS FOR TELCO CUSTOMERS

    From 1 September, 2013, spend management alerts, in addition to a range of new tools introduced for telco consumers following registration of the TCP code by the ACMA, will take effect. The changes include:

    • Residential customers on post-paid mobile and internet plans (with the potential for excess usage charges) will receive email updates when their data usage reaches 50 per cent, 85 per cent and 100 per cent of the amount included in their plan
    • Residential customers of the largest three mobile providers—Optus, Telstra and Vodafone—will also, from that date, receive SMS alerts when usage of their included value for calls and SMS reaches 50, 85 and 100 per cent.
    • The warnings at the 100 per cent usage mark must also include details of excess usage charges, which can be considerably higher than charges within the plan.

    ‘These notifications target customers most at risk of bill shock and represent an enormous industry reform by placing the power of information in the hands of consumers when they need it,’ said ACMA Chairman, Chris Chapman.

    Customers will not receive the warnings if they are on a plan which does not expose them to bill shock. This includes plans that are a pre-paid service, have a hard cap, or are an unlimited service, a dial-up internet service or are a shaped internet service, (i.e. which slows data rather than imposes excess usage charges when customers reach their data usage limit). The warnings are not mandatory for mobile plans launched prior to 1 March, 2012.

    The final element of the new TCP code, developed by Communications Alliance, rolls out in September 2014 when customers of the mid-sized and small telcos (less than 100,000 customers on included value plans) receive voice and SMS usage alerts to accompany their data alerts.

    Image: artur84/ www.FreeDigitalPhotos.net

  • Are Telcos really behaving themselves under new TCP code?

    telcosRemember the Telecommunications Consumer Protection (TCP) Code? It was put in place in September last year after a swarm of consumer complaints about telcos in Australia and was devised by Industry Group the Communications Alliance as a last ditch attempt to avoid regulation of the telco industry. Almost a year on, the overseer of the Code, the Australian Communications and Media Authority (ACMA) have released their report on how telcos are faring with its implementation, but it seems the results have divided interpretation. The ACMA has reported that telcos are handling complaints better – and Industry Group the Communications Alliance has released a statement congratulating its members on how well they are doing – but a consumer group has strongly disagreed with those claims. We look at the report, what the differing opinions are of how telcos are implementing the TCP Code, and also offer insight into credit listing disputes and the TCP Code.

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repair and www.fixmybadcredit.com.au.

    It was reported in ZD Net early this week in its article Australian telcos making progress on complaint handling: ACMA, that three investigations conducted by the Australian Communications and Media Authority (ACMA) have found that the big 3 – Telstra, Optus, and Vodafone have largely improved their customer complaints process since the introduction of the 2012 Telecommunications Consumer Protection (TCP) Code.

    The TCP Code placed new requirements on telcos to have clearer advertising, spend-management tools, and improved complaint handling. The code was introduced in phases, with the new compliant and advertising rules arriving on day one, standard summaries of pricing and product information arriving in March this year, and spend-management being required by September 2013.

    Here is an excerpt from that article:

    In February, the ACMA began investigations into Telstra, Optus, and Vodafone, with the telcos providing details of 200 customer complaints. Of these complaints, Telstra and Optus both had one complaint that the ACMA found to be in breach of the code — specifically, the clause that requires the resolution of an issue within 10 working days once the customer has agreed to the telco’s proposed action to resolve the complaint — while Vodafone made it through without any breaches.

    Responding to the ACMA’s finding, Telstra said, “It would be almost impossible to improve its level of compliance with clause 8.2.1(a)(xiii) of the TCP Code, as 99 percent is such a high result, especially taking into account the potential for human error.”

    In the cases of both Telstra and Optus, the ACMA said that a single instance is very low as a proportion of complaints provided. While the sample size is small, the authority accepts that Telstra and Optus have “appropriate policies and procedures in place to comply”, and that both telcos have “demonstrated a high level of compliance”.

    “The ACMA is pleased that the investigations indicate that the top three providers are delivering agreed resolutions to customer complaints in the time frames required by the TCP Code,” said ACMA chairman Chris Chapman in a statement.

    “It is also apparent that Telstra, Optus, and Vodafone have each taken steps to strengthen their complaints-handling procedures, since the new TCP Code was registered last September and has dedicated considerable resources to TCP Code compliance. However, the ACMA will continue to monitor compliance in this area.”

    But consumer group the Australian Communications Consumer Action Network (ACCAN) says more still needs to be done. The group told IT Wire the ACMA was being “a little bit misleading.”

    Here is an excerpt from that article ACCAN cans ACMA’s view on telco complaint handling

    “The ACMA investigation shows telcos are in breach of the TCP Code on a daily basis,” says ACCAN spokesman Asher Moses.

    “We are encouraged to see ACMA investigating these breaches. But the regulator’s unwillingness to hand down even the most basic available penalty for confirmed breaches has the potential to create a culture of poor compliance.”

    Moses gives the example, from ACMA’s own documentation, of a Telstra customer who waited 48 working days to stop being charged for a T-Hub device they had already returned. In this case ACMA imposed no penalty.

    “ACCAN believes ACMA should take tougher regulatory action for non-compliance with the code,:” says Moses. “A recent KPMG study found Australian telco customer service ranked 18th out of 25 countries, behind nations such as Indonesia and Nigeria.

    “Judging from complaint statistics, telcos seem to be worse at customer service than Australian banks, who are historically the most hated service providers in Australia. ACMA’s inquiry into telco customer service followed record complaints from consumers. The inquiry finished about a year ago, but only half of the six reforms coming out of that inquiry have been fully implemented.

    “Some of these overdue reforms include performance reporting and customer service charters, expenditure management tools (due to be implemented from 1 September), and overhaul of the Telecommunications Industry Ombudsman scheme.”

    The ACMA has fought back from criticisms, saying that many of the ACCAN wishes for a tougher agency “are not technically possible.”

    “We do not have the power to impose a penalty. We can issue a warning or a direction but not impose a ‘penalty’,” an ACMA spokesperson today told Computerworld.

    “Code compliance remains a priority for the ACMA, and the ACMA will continue to closely monitor compliance across the industry,” the agency spokesperson said.
    “However, in light of the number and nature of the contraventions found, and the steps which have been taken by the providers in question to improve and ensure compliance, the ACMA has decided not to take enforcement action in this particular case. In no way does this mean that non-compliance is condoned.”

    Telco listings in dispute

    As the TCP Code was only implemented in September last year, we are probably yet to feel the positive ramifications of new requirements put on Telcos under the TCP Code.
    At the time of the Code’s implementation, MyCRA had approximately 26% of its clientele with a disputable telco credit listing. These disputes ranged from alleged system errors, incorrect notices provided, through to data and plan confusion and hardship disputes.

    At the present moment, that hasn’t changed a great deal.

    However, we are currently handling a telco dispute where we believe a telco has breached its obligations to the consumer under the TCP Code. That case is currently mid-way through the dispute process.

    On the whole, we welcome the increased obligations of Telcos to comply with what we consider basic and fair customer rights. Most importantly, the rights for telco customers to fully understand exactly what their phone plan entails to avoid “bill shock”. Issues like international roaming charges, excess data charges and customers going over plan allowances (especially when the plan had the terms “unlimited” within it) has in the past been a source of dispute amongst customers.

    We also agree with the need for telcos under the TCP Code to provide ‘faster, better complaints-handling, with urgent complaints resolved within two days’. If this is consistently implemented amongst telcos, this sense of urgency will go a long way to minimising unfair defaults due to a more streamlined process of handling complaints. The grey area is what constitutes ‘urgent’.

    Image: num_skyman/ www.FreeDigitalPhotos.net

  • Vodafone customers – ‘desperate and defaulted.’

    20070920 Image Close up of credit card bill iStock_000003981197Large GDOE 01Media Release

    Vodafone customers – ‘desperate and defaulted.’

    5 March 2013

    A Queensland family should have been relaxing in their newly purchased home after an interstate transfer, but instead they have been fighting Vodafone over a default which saw them lose their house contract – a default which they say, was ludicrous.

    Up till now, Alastair and Nikki Taylor have not been able to join the 20,000-plus Vodafone customers who are mounting a class action against the telco, because doing so could have damaged their dispute case against their Vodafone default listing.

    The default listing which has been proven to be unlawful and finally been removed by Vodafone today, saw them cop what they say, is an unfair and incorrect 5-year default on their credit file.

    “This default was stopping us from getting a home, and it is grossly unfair the time and money we have lost, not to mention the stress it has caused our family,” Alastair says.

    Alastair and Nikki purchased a wireless internet modem from a Vodafone store in Western Australia, but claim they were misled about the internet coverage it would provide.

    “At the time we verified with the sales assistant many times if it would work in the address we intended to move to as we had recently bought a new house. She assured us we would have full coverage. Upon arriving at our new address we found we were absolutely without coverage,” Alastair says.

    He says he contacted the store at least ten times, leaving messages and getting no response.

    “When I did finally get to talk to someone they rudely hung up on me. The next time I spoke to somebody, was when a debt collector called chasing the outstanding money around two months later. I told them the situation but they wouldn’t listen and were only interested in getting the money out of me,” he says.

    The couple begrudgingly paid the account late last year, when Alastair got an interstate transfer. They were told the outstanding account was affecting their credit rating and stalling their purchase of a home in Cairns.

    “We had no idea we were defaulted anyway whether we had paid the account or not. We lost the house we were after, and have had a lengthy battle with Vodafone to remove it,” Alastair says.

    Their advocate, MyCRA Credit Rating Repair’s Graham Doessel says they are certainly not alone in their experience.

    “Many telcos have historically poor levels of customer service and many times customers don’t get what they think they are paying for. What’s worse is when those botched plans end up costing the customer their credit file,” Mr Doessel says.

    The Telecommunications Industry Ombudsman’s annual report, released in October last year shows a rise in complaints about credit default listings. Complaints about consumers being credit default listed while their debt was in dispute increased 18 per cent from 3,700 to 4,370.

    “I am very concerned about the increase in the number of complaints where credit default listings are disputed,” Mr Cohen said “Credit listings can have very significant impacts on people – affecting applications for credit, including for housing and personal loans. Any credit default listing should only occur after the correct procedures have been followed.”

    Mr Doessel says preventing and disputing a credit file default from a telco often comes down to awareness of legalities.

    “Many people don’t know the rules well enough when dealing with these big companies, so it can be a little like David and Goliath and many times the big guy wins,” he says.

    He says his clients encounter difficulties with telcos at many levels.

    “In our experience it’s not just the initial sale of product which is in dispute, but the entire customer service process and often the process of default listing the client as well,” he says.

    He is hoping the very public class action will be a force of change, especially following the introduction of tougher laws for telcos in September last year.

    The ‘Telecommunications Consumer Protection Code’ was pushed through with the guidance of the Australian Communications and Media Authority (ACMA) which have amongst other things aimed to facilitate faster, better complaints-handling, with urgent complaints resolved within two days.

    ACMA Chairman Chris Chapman said at the time the ACMA would put the industry on notice, advising they would take a “far more robust approach” to ensure the industry’s compliance with the new Code.

    You can find more information on disputing a default with your telco at the MyCRA website www.mycra.com.au.

    /ENDS.

    Please contact: Graham Doessel – Founder and CEO 3124 7133

    Lisa Brewster – Media Relations MyCRA media@mycra.com.au

    http://www.mycra.com.au/ www.mycra.com.au/blog 246 Stafford Rd, STAFFORD Qld

    MyCRA Credit Rating Repairs is Australia’s number one in credit rating repairs. We permanently remove defaults from credit files. CEO of MyCRA Graham Doessel is a frequent consumer spokesperson for credit reporting issues and is a founding member of the Credit Repair Industry Association of Australasia.

  • Telco bill shock should in theory now be a thing of the past

    The Telecommunications Consumer Protection (TCP) Code came into effect on September 1. We look at what this means for telco customers and the possibility that less consumers could be subject to bill shock and subsequent credit rating defaults due to sky-high bills they had not budgeted for.

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repairs and www.fixmybadcredit.com.au.

    Currently approximately 26% of our credit repair clients have suffered bad credit from telcos (telecommunications providers). Not all of that bad credit should be there. Whilst mistakes and mis-communications are frequent in the industry, as they are in many others – one of the major significant differences we have noticed with the telco industry compared with other industries issuing credit file defaults, is more clients are in dispute over excess charges.

    Excess charges or “bill shock” can occur when the actual bill the customer receives is significantly higher than what they understand it should be. Issues like international roaming charges, excess data charges and customers going over plan allowances (especially when the plan had the term “cap” within it) seems to be a frequent source of dispute amongst customers.

    Unfortunately sometimes the customer is unable to come to an agreement over these charges before they are issued with a credit rating default. These issues can be hard to fight. Often the customer will say what they had first understood the plan to be for, or what they wanted the phone to do, was not what eventuated.

    Resolutions with telcos over these billing issues can be difficult to come to. Sometimes consumers have reluctantly paid the bill, thought the matter was settled, only to find they were defaulted anyway, and others have just refused to pay the bill until they got some resolution. Either way, customers have been faced with at least 5 years of bad credit from the episode unless they have been able to make a successful complaint.

    The telcos – with all the power on their side can often come out on top.

    Escalating levels of telco complaints in Australia, resulted in a major public inquiry by the Australian Communications and Media Authority (ACMA) and the report – Reconnecting the Customer. This examined the root causes of the industry’s poor customer service and complaints-handling performance. The telco industry was asked to regulate or be regulated – and so the Telecommunciations Consumer Protections (TCP) Code was developed by the Communications Alliance (CA), and a final draft was registered in late July.

    That TCP Code came into effect on 1 September 2012. If the code proves to be effective, and if the ACMA does as it says it will and come down heavily on those that don’t comply with the TCP Code, there will be significant positive changes for telco customers.

    What the Code provides for.

    The ACMA outlines the basic benefits for consumers in its article Fair call—new telco code to benefit consumers. Here is a breakdown of consumer benefits of the TCP Code:

    • Telco providers must be clear about what they are offering in their phone plans and stop using confusing terms like ‘cap’ (unless the offer refers to a ‘hard cap’—an amount that cannot be exceeded).

    • Better spend management tools designed to avoid ‘bill shock’.Including improvements in billing processes and credit management, and the introduction of notifications about data usage and expenditure thresholds.

    • From 27 September telcos will be required to provide unit pricing for national calls, standard SMS and downloading 1 MB of data in advertisements.

    • From 1 March2013 customers buying a new service will receive a two-page document called the ‘Critical Information Summary’. This includes essential information about service, pricing and complaints-handling, as well as volumetric information so consumers can easily understand how many two-minute calls or texts they can make under their plan.

    • Faster, better complaints-handling, with urgent complaints resolved within two days. All of these new measures will be monitored and the telcos subject to new benchmarking standards.

    • For customers having difficulty paying their bills or meeting unexpectedly high bills, telcos must advise consumers about spend management tools, hardship advice and options to restrict a service.

    • A new industry compliance body is being formed to ensure all industry participants comply with the new code.

    According to IT Wire in its story New telco code toughens up consumer protections, Optus jumped the gun ahead of the introduction of the Code, and launched its new usage alert service which it says gives its customers greater transparency in managing spending on their mobile accounts. The new Optus service sends text alerts to Optus’ customers on most post-paid mobile plans when they reach 50 per cent, 85 per cent and 100 per cent of their voice, text and data allowance.

    IT Wire also reports ACMA Chairman Chris Chapman as saying the ACMA will put the industry on notice, advising they would take a “far more robust approach” to ensure the industry’s compliance with the new Code and had “resourced up in this space.”

    “We will conduct more audits and investigations dealing with key areas of consumer detriment and expect substantial changes in industry practices,” Mr Chapman says.

    For consumers who consider that their service provider is not complying with the code, Chapman says they “may make a complaint to the provider in the first instance and if they are not satisfied with the resolution, they should contact the Telecommunications Industry Ombudsman.”

    And, if telecommunications service providers do not comply with the code, Chapman says they faced a direction to comply from the ACMA, “while further breaches could lead to Federal Court action where civil penalties of up to $250,000 are possible.”

    We will be following these telco improvements with great interest as they relate to the volume of credit file defaults due to telco customer service issues and bill disputes.

    For those consumers currently facing what they consider to be excessive charges, or other issues with their telco which have resulted in bad credit – it is possible MyCRA Credit Rating Repairs may be able to help.

    If a credit listing has been placed unlawfully, it may be required to be removed from the consumer’s credit file. Consumers can contact a credit repair advisor 1300 667 218 to assess their suitability for credit repair. There are no guarantees of success, but the specialised knowledge of credit reporting and industry law means engaging the services of a professional credit repairer gives the consumer the best chance of having bad credit removed completely and permanently from their credit file. Visit the main website for more information www.mycra.com.au.

  • Telcos may be forced to reign in their mobile roaming charges

    Going overseas? Often you are told to be wary about using your mobile in case you are charged for international roaming. And with good reason – many clients get what’s commonly called “bill shock” after returning from overseas. But it was announced last week that the government is cracking down on these charges. We look at what this means for you and your credit file.

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repairs and www.fixmybadcredit.com.au.

    Recently we gave you a breakdown of things to look out for with your credit file when traveling. In this blog post, titled How An Overseas Trip Can See You With Bad Credit we looked at ways in which you could be at risk of getting a bad credit rating when traveling overseas. Number 3 on the list of ways you can cop bad credit on an overseas trip was phone charges:

    Many phone companies charge you extra for calls you make and receive while you are o/s. Call your telco provider and make sure you know all the facts before you take your phone on a holiday with you. It might be better to get an overseas phone or SIM for your trip instead.

    We help a number of clients who have had a default or other credit listing placed on their credit file during or after the course of a bill dispute following what customers call “excessive” “outrageous” and “unfair” mobile roaming charges which see them with whopping phone bills they either can’t pay or refuse to pay.

    But it seems telcos may soon be forced to reduce their mobile roaming charges.

    The Australian reports in its story New Move to Cut Mobile Roaming Charges,that the Australian and New Zealand governments have combined to stop telcos on both sides of the Tasman from hitting travellers with excessive mobile roaming fees.

    Communications Minister Stephen Conroy and New Zealand Communications Minister Amy Adams today released a draft report that looks at ways to cut charges and improve transparency.

    “The draft report makes it clear that telecommunications companies are stinging consumers on trans-Tasman mobile roaming charges and that their profit margins are excessive,” Senator Conroy told reporters in Canberra.

    The findings have already prompted the federal government to protect Australians travelling further abroad.

    The Australian Communications and Media Authority (ACMA) has been told to create an industry standard for mobile roaming so charges for call, text messages, internet surfing are transparent.

    Senator Conroy said the standard should be in place within a year.

    “One of the most common complaints that I hear is from people who return from overseas and are confronted by a mobile phone bill that runs into the hundreds or even thousands of dollars,” he said.

    Both Ministers said the frequency of travel between nations highlights the need for common and reasonable pricing for international roaming.

    They are now seeking feedback on the draft report from the telecoms industry, ahead of formulating their final responses.

    In the meantime, there are many who are currently facing these billing issues. The important thing to remember is – whenever any changes are made or agreements are reached, whether it be with your billing charges or your accounts, or when going overseas, you should always request things be sent to you in writing for confirmation.

    If you are worried about what may have been reported about you on your credit report, you are entitled to obtain a copy of your credit report for free from the credit reporting agencies in Australia (you can do this once every 12 months). A report will be mailed to you within 10 days of your request.

    If you think a default on your credit file is wrong, or you want to dispute your credit report, contact a professional credit repairer to discuss your suitability for credit repair. If the credit listing is incorrect, contains errors or just shouldn’t be there, a credit repairer can help prepare your case and give you the best chance of having the default or other mistake on your credit file completely removed so you can apply for credit with a clean slate. Contact a Credit Repair Advisor at MyCRA Credit Rating Repairs on 1300 667 218 or visit our main website www.mycra.com.au.

    Image: adamr/ www.FreeDigitalPhotos.net

  • ACMA is set to get tough on dodgy Telcos

    It seems regulators will be stamping their authority over Telcos that breach new customer service rules when they are released in a month’s time. We have been heavily following the introduction of these new laws as a much-needed safeguard for those consumers who have been suffering at the hands of poor advertising and complaints handling from the Telco industry. This has led to many defaults being unfairly placed on credit files, and also invariably sometimes credit file errors.

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repairs and www.fixmybadcredit.com.au.

    The Sydney Morning Herald reported yesterday in its story Regulator takes tougher stance with Telcos that in the lead up to the instigation of a new Telecommunications Consumer Protection Code, the Australian Communications and Media Authority (ACMA) is warning telcos it will have little patience for those that ignore the new regulations:

    “The communications regulator is warning of “more investigations [fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][and] more court cases” against telcos that breach new customer service rules starting in four weeks.

    The new rules will stop telcos using the word “cap” and force them to offer clear pricing information, usage alerts and better complaint handling services. It also set up Communications Compliance – an industry funded body that will monitor breaches.
    General manager of content, consumer and citizen at the Australian Communications and Media Authority, Jennifer McNeill, said it will have little patience for telcos that flaunt the new Telecommunications Consumer Protection code.

    The ACMA previously used a gentle ‘engage and educate’ method to help telcos comply, but this attitude would be replaced with a tougher stance, she said.

    “You will see more investigations, more directions and more court cases,” she told a room full of telco industry representatives at a briefing.

    “We expect immediate compliance with the obligations that have been substantially carried over from the old code.”

    Ms McNeill said the ACMA would no longer tolerate “good natured incompetence” as an excuse for breaches and would also ask telcos to substantiate any unbelievable service offers. Staff had been shifted around within the ACMA to bulk up its ability to enforce compliance, she added.

    When the code starts on 1 September, if telco’s breach the code, the ACMA can direct them to comply with it.  If they don’t comply with the ACMA’s direction, the Federal Court can impose a penalty of up to $250,000.

    The industry body that drafted the code, Communications Alliance, is conducting briefings and training sessions around the country to help companies prepare for the changes.

    If your Telco has placed a default on your credit file which you believe is unfair, incorrect or just shouldn’t be there – then you may have grounds to request its removal from your credit file. To discover whether you may be a suitable candidate for credit file repair, give the MyCRA Credit Rating Repairs team a call on 1300 667 218.

    Image: Sura Nualpradid/ www.FreeDigitalPhotos.net[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • The TIO just got more muscle to penalise Telcos in small business disputes

    The Telecommunications Industry Ombudsman (TIO) reports in some areas they’ve almost tripled their workload  and it has just been given new powers to handle complaints with a higher total value, which should pave the way for the Ombudsman to deal with more small business issues as they relate to the telecommunications industry. We look at what this will mean for small business, and look at general figures for Telco complaints, and how this may affect consumer credit files and credit file listing complaints.

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repairs and www.fixmybadcredit.com.au.

    From 1 July 2012, the TIO will have the power to give legally binding directions to service providers of up to $50,000 in value, and to make recommendations up to $100,000. This is an increase from direction powers of $30,000 and recommendation powers of $85,000. There will also be a change to the way it classifies a small business.

    “The adjustment to our monetary limits means that consumers who previously had disputes too large for us to deal with will now have access to our fast, free and independent service,” Ombudsman Simon Cohen said in a statement to the media last week.

    The TIO says the changes will be of particular benefit to small business consumers. At the same time as the constitutional change on monetary limits commence, the TIO will adopt a more flexible approach to defining a small businesses, making TIO services accessible and relevant to these consumers.

    New Small Business Definitions for TIO

    The TIO can assist small businesses with an annual turnover of less than $3 million and up to 20 employees (or up to 100 staff in the case of seasonal operations or manufacturing businesses).

    Even where these conditions might not be met, the TIO will consider other aspects such as the issues in dispute, the nature of the business (for example, whether it is not for profit or it operates from home), and whether the business is independently owned and funded by a small number of individuals who make most of the important business decisions.

    In the past, the TIO would also take into account the amount in dispute and the business’s yearly expenditure on telecommunications. These criteria have now been removed.

    Prior to these new powers, the TIO announced its intention is to expand its role beyond dispute resolution to helping improve telecommunications services. The TIO says it aims to achieve this by contributing to better customer service and complaint handling and working with industry to identify broader issues affecting consumers.

    Consumer Complaint Numbers Through The Roof

    In the magazine TIO Talks, it reported on its most recent survey of TIO services. It counted 52,231 new complaints received between January and March 2012. Almost two-thirds were about mobile phone services – with two significant trends in new mobile phone complaints coming from consumer issues about over-commitment resulting from inadequate spend controls, and complaints about excess internet usage charges. It revealed the staggering figures that numbers for internet data usage complainnts  have jumped 180 per cent in 12 months. The TIO Reports:

    New complaints about overcommitment caused by inadequate spend controls increased to 4,282 in the January-March 2012 quarter, compared to 2,181 in the same quarter in 2011. In the same periods, new complaints about disputed internet charges increased from 981 to 2,823 (180 per cent).

    “It is well known that more internet browsing and downloads are now done on mobile phones and other mobile devices. With this change in consumer behaviour, we have seen complaints about excess data charges almost treble over the last year,” Ombudsman Simon Cohen said.  “The incidence of these complaints will reduce if consumers are only contracted for services they can afford, and where spend management tools such as notifications and usage meters are accurate and reliable”.

    Credit File Listing Complaints from Telco Industry

    Every day as credit repairers, we forward complaints to the TIO about consumer complaints and bill disputes which have seen them not only having billing issues, but having those issues impact their ability to obtain credit through being defaulted.

    We would agree that internet data usage complaints are rampant. Data usage on mobile phones seems to be one of the biggest sources of confusion for consumers. Some clients have trouble understanding their accounts (and often claim the plan they were put on was not appropriate for what they intended to use their mobile and/or internet for), and when they are hit with massive bills, they struggle to make the repayments; others claim they have great difficulty getting billing issues and disputes sorted out at the time they appear, and end up having defaults put on their credit file because they refuse to pay a bill they disagree with; and then some are simply the victim of internal errors within the telco industry – wrong accounts, wrong names, wrong plans, wrong addresses – and all of these things contribute to negative credit file listings that they often don’t know anything about until they apply for credit and are refused.

    Understanding Bill Disputes with Telcos

    MyCRA’s Legislative Compliance Officer specialising in Telco credit listing complaints has given people a few quick tips to take heed of when disputing Telco bills:

    1. Attempt to resolve the dispute with the Telco first. If a bill has just popped up you don’t agree with, let your Provider know, and DOCUMENT ALL CORRESPONDENCE WITH THEM (and document who you speak with).

    2. Get all responses in writing. The matter may seem at an end, but sometimes people believe they have sorted it out only to find out later they have been defaulted anyway.

    3. If the matter can’t be resolved internally, take your case to the TIO.

    4. If at any stage people have a credit file listing from a Telco which they believe shouldn’t be there, they should contact a credit repairer, and give them all the information so far. They can then work on the person’s behalf. Credit file listings can be difficult for the individual to remove. If people request Creditors remove bad credit history, most people are told listings cannot be removed, but can be marked as ‘paid’ if the account was settled. This may not be enough to obtain credit with most lenders in the future, and these listings will be on a person’s credit file for between 5 and 7 years. With their knowledge of credit reporting law, a credit repairer will negotiate with the creditor as well as escalate the matter to the TIO on the client’s behalf if necessary. This gives people the best chance of actually being able to remove bad credit history which shouldn’t be there.

    A New Consumer Protection Code

    A revised Telecommunications Protection Code is currently being considered by the Australian Communications and Media Authority (ACMA) which, if adopted, will require telcos to provide their customers with notifications when they have used 80% and 100% of their data usage in the plan. After 24 months telcos will be required to extend notifications to voice and SMS usage. These changes come after pressure from ACMA for Telcos to offer better protection for consumers, or face external regulation.

    Image: suphakit73/ www.FreeDigitalPhotos.net

  • Telco consumer code on third rewrite for June deadline

    A third shot at a telecommunications consumer code has recently been submitted by Telcos to the Australian Communications and Media Authority (ACMA). The Code submission is an attempt to self-regulate a heavily criticised industry and prevent Government intervention by the end of June deadline.  The Code is intended as a resolution to an 18-month investigation by the ACMA into telco customer complaints. As Telco disputes make up a heavy part of credit rating errors to date, we have been watching the outcome of this situation and how it could impact the consumer’s ability to resolve disputes, and prevent credit file errors and default listings which should not be there.

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repairs and www.fixmybadcredit.com.au.

    IT News recently reported on developments of the Telecommunications Consumer Protection (TCP) Code in its article ACMA Sets June Deadline for Consumer Code.

    It reports that the ACMA has committed to deciding on whether to accept or reject a revised telco industry code on customer service and advertising by the end of the month, in preparation for registration and implementation by August 1.

    “We indicated that the previous ones that they had lodged with us wouldn’t secure registration,” ACMA chairman Chris Chapman told iTnews.

    Here is an excerpt from that story:

    It is understood the watchdog has already held meetings to discuss the May revision of the code, the largest revision of which included the concession for telcos to print unit pricing for SMS messages, phone calls and data blocks on outdoor advertising and flyers.

    It has previously opposed the move as unnecessary, despite attacks by consumer representative group ACCAN.

    Chapman threatened in April to directly regulate the industry if it ultimately declined to register the code, even on minor grounds.

    At the time, Chapman said the March revision of the code would be the final one for consideration. But ongoing discussions with industry led to one more version of the document ultimately being considered…

    It was initially submitted to the ACMA for registration in February but has since undergone two revisions as the ACMA declined to register the revised code over concerns it did not meet all recommendations laid out by the inquiry.

    “We absolutely believe that this code is complete, that it meets not just the requirements of the [fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][Reconnecting the Customer] enquiry, it also meets the test of being the best and most sensible code we can put in place to enhance consumer protections and provide a win-win for consumers and the industry,” Communications Alliance chief executive John Stanton told iTnews.

     

    The ACMA  formally invited the industry to incorporate the following changes to its Telecommunications Consumer Protection (TCP) Code in its report Reconnecting the Customer:

    1.Clearer pricing information in advertisements allowing consumers to more easily compare services.
    2.Improved and more consistent pre-sale information about plans.
    3.Developing meaningful performance metrics which allow consumers to compare providers.
    4.Tools for consumers to monitor usage and expenditure.
    5.Better complaints-handling by providers.

    A shake up in the Telco industry is long overdue. Australians have been caught out time and again with botched bills and unresolved disputes with their Telco providers and their credit files have been damaged as a result.

    The Telecommunications Industry Ombudsman (TIO) revealed its findings on the extent of discontent within the industry in a survey of more than 500 Telco customers who had lodged complaints between July and August 2010.

    The TIO survey revealed more than half of consumers reported contact with their service providers five or more times before ringing the TIO. It also revealed most consumers reported spending three hours or more unsuccessfully trying to solve their complaint, with one in 5 saying they spent more than nine hours.

    “Consumers who come to the TIO report spending substantial time and effort solving their complaints,” said Ombudsman Simon Cohen.

    “They report being transferred from department to department, not being transferred to supervisors and, perhaps most frustratingly, getting no solution or a broken promise for their efforts. They are – by any measure – resilient consumers.”

    When disputing bills with the Telco industry, many people are unfairly penalised with a bad credit rating when the matter could have been dealt with better by the Telco in the first place. There is a great number of Telco credit file listings which contain errors, or have been put there unjustly or unfairly. Under current legislation, people do have the right to have credit file discrepancies resolved. But unfortunately it can be difficult for customers if they are not aware of the appropriate legislation and don’t have time to negotiate with creditors.

    MyCRA sends out complaints regularly to the TIO requesting investigations into errors that have found their way onto customer credit files.

    Hopefully these changes will result in less confusion and complaints in general amongst Telco customers and fewer people who have their good name destroyed unnecessarily due to credit file defaults which should not be there.

    For help with removing credit rating errors from credit files, contact MyCRA Credit Rating Repairs on 1300 667 218 or visit the main website www.mycra.com.au.

    Image: David Castillo Dominici/ www.FreeDigitalPhotos.net[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • New recommendations to protect Telco customers welcomed

    Media Release
    12 September

    Changes recommended by The Australian Communications and Media Authority in its final report into the telecommunications industry should finally see Telcos held accountable for poor customer service and complaints handling, according to a national credit repairer.

    Director of MyCRA Credit Repairs, Graham Doessel says if the ACMA’S changes are implemented swiftly across the industry, customers should reap the rewards.

    “A shake up in the Telco industry is long overdue. Australians have been caught out time and again with botched bills and unresolved disputes with their Telco providers and their credit files have been damaged as a result,” Mr Doessel says.

    He says about one third of his credit repair clients have had issues with their Telco provider which has left them out of pocket or facing black marks on their credit rating.

    “Our clients have suffered greatly for the inadequate policies and procedures of many of the Telco providers in this country. We send out far too many complaints every day to the Telecommunications Industry Ombudsman (TIO) requesting investigations into errors that have found their way onto customer’s credit files,” he says.

    The ACMA is formally inviting the industry to incorporate the following changes to its Telecommunications Consumer Protection (TCP) Code by February 2012:

    1.Clearer pricing information in advertisements allowing consumers to more easily compare services.
    2.Improved and more consistent pre-sale information about plans.
    3.Developing meaningful performance metrics which allow consumers to compare providers.
    4.Tools for consumers to monitor usage and expenditure.
    5.Better complaints-handling by providers.

    “We have closely consulted on these outcomes with consumers and industry and the overwhelming response has been that improvements are both urgent and necessary,” ACMA Chairman, Chris Chapman says.

    The ACMA says if the Telecommunications industry fails to develop a code that addresses these concerns, the ACMA will mandate the changes through direct regulation.

    The Telecommunications Industry Ombudsman recently revealed its findings on the extent of discontent within the industry in a report released last month from a survey of more than 500 Telco customers who had lodged complaints between July and August 2010.

    The survey revealed more than half of consumers reported contact with their service providers five or more times before ringing the TIO. It also revealed most consumers reported spending three hours or more unsuccessfully trying to solve their complaint, with one in 5 saying they spent more than nine hours.

    “Consumers who come to the TIO report spending substantial time and effort solving their complaints,” said Ombudsman Simon Cohen. “They report being transferred from department to department, not being transferred to supervisors and, perhaps most frustratingly, getting no solution or a broken promise for their efforts. They are – by any measure – resilient consumers.”

    Mr Doessel says when disputing bills with the Telco industry, many people are unfairly penalised with a bad credit rating when the matter could have been dealt with better by the Telco in the first place.

    “It is astounding the number of Telco credit file listings which contain errors, or have been put there unjustly or unfairly. Under current legislation, people do have the right to have credit file discrepancies resolved. But unfortunately it can be difficult for customers if they are not aware of the appropriate legislation and don’t have time to negotiate with creditors,” he says.

    Under current legislation, an account which is more than 60 days in arrears can be listed by the creditor as being unpaid on the customer’s credit file. This ‘default’ is generally listed on a person’s credit file regardless of whether they believe there are errors in the details of the bill or with the payment amount.

    “Defaults remain on a person’s credit file for 5 years. Currently, defaults – even those that are marked as ‘paid’, will prevent people from obtaining a home loan with most lenders. In fact, even having a few too many credit enquiries can be enough for an automatic decline” he says.

    Mr Doessel is hoping the ACMA’s recommendations are taken on board swiftly to ensure a more transparent industry.

    “Hopefully the changes will result in less confusion and complaints in general amongst Telco customers and fewer people who have their good name destroyed unnecessarily due to credit file defaults which should not be there,” he says.

    /ENDS

    Please contact:
    Lisa Brewster – Media Relations   Mob: 0450 554 007 media@mycra.com.au
    Graham Doessel – (07) 3124 7133  www.mycra.com.au/ www.mycra.com.au/blog

    MyCRA Credit Repairs is Australia’s leader in credit rating repairs. We permanently remove defaults from credit files.

    Links:
    http://www.acma.gov.au/WEB/STANDARD/pc=PC_410157
    http://www.tio.com.au/media_statements/RELEASES/2011/08_12_Resilient_Consumers_Report.html

    Image: Stuart Miles / FreeDigitalPhotos.net