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Introduction
This submission focuses on
issue 4, section XVII of the Implementation Review of the
Telecommunications Act 2001 discussion paper regarding the need for
an industry
funded service performance complaints resolution facilitator.
This part of the review
discussion document is of particular relevance to CAB clients.
Most clients seeking the help of the Citizens Advice service with
telecommunications related
enquiries do so as consumers of telecommunications services. The
majority of
these clients seek assistance with disputes/issues/problems they
have with their service
providers.
The opinions expressed and
the recommendations put forward in this submission have
been developed on the basis of evidence the Association has gathered
from bureaux in
the form of client case studies and anecdotal information from
bureau workers.
Telecommunications
providers' service performance
The Association believes
there is a need to improve how telecommunications service
providers respond to and deal with service performance related
complaints (issue 4,
section XVII, para 116).
CAB regularly assists clients
who have problems with their telecommunications service
providers. Case studies and anecdotal evidence from bureau workers
reveal that the
kinds of issues our clients face are:
a.
Billing:
A
client’s relative, who lives in a different part of the country to
the client, joined
up
with the same service provider that the client had been with for
some time.
In
error, the relative was supplied with the same account number and
the client
began
receiving their relative’s bills as well as their own. It took
some months to
resolve
the situation and the client feels very unhappy about how long it
took to
fix
the problem and the effect this had on them.
A
client’s grandchild, unbeknownst to them, set up a phone and
internet account
under
the client’s name. The grandchild proceeded to run up an extremely
large
bill
through use of 0900 numbers, calls to mobile phones, and excessive
Internet
use. The client cannot afford to pay the amount and does not think
they
should
have to anyway. The grandchild and their family also have no money
to
cover
the bill. The client has not been successful in their negotiations
with the
service
provider who has informed the client that the next step will be for
the
debt
collectors to take up the issue with the client.
b.
Disconnections:
A
client contacted the bureau distressed because their phone had been
cut off.
The
client could not recall having received any information warning that
this was
going
to happen and believed the provider had made no attempt to inform
them
of
the impending disconnection.
A
client had been attempting to have their phone disconnected. They
had been
trying
for some time to get through on the provider’s 0800 number to
arrange for
the
disconnection, but to no avail.
A
client’s boarder had vanished, leaving the client with hundreds of
dollars in
unpaid
phone charges. The client was unable to make contact with the
boarder
to
collect the debt owing. Because the client relies on the sickness
benefit as
their
only form of income, the debt is too high for them to pay back
unless
through
a gradual payment plan. The provider will not accept this option and
is
going
to cut off the phone. The client is distressed because they need the
phone
on at home for medical reasons. If the phone is disconnected this
may
compromise
the client’s safety and wellbeing.
c.
Switching:
A
client’s partner took a call from one of their service
provider’s competitors and
was
encouraged to change provider. The partner declined the offer.
However,
upon
receipt of the monthly bill, the client discovered that they had in
fact been
switched
without their permission and are now being billed by the new
provider.
The
client refuses to pay.
A
client agreed verbally over the phone to sign up with a new
provider. After
examining
the application form they were sent in the post, they then decided
to
stay
with their current provider. The client did not complete and submit
the
application
form and thought this meant they had not changed companies and
no
further action was required. Later, the client received a bill in
the post from
this
provider. They called to follow-up and were told they had agreed to
the
service.
The client arranged to be switched back but have been left with a
bill
from
the new provider which, on principle, they refuse to pay.
Independent
consumer complaints resolution mechanism
The
Association is of the opinion that a “mechanism to provide independent
facilitation
of resolution of users’ telecommunications service performance concerns”
should be
established
(issue 4, section XVII, para 117).
Case
studies and anecdotal information from bureaux suggest that providers’ own
systems are often inadequate in addressing legitimate complaints and concerns of
consumers. The lack of an independent
mechanism in this environment to assist
individual customers has left a gap in the protection for consumers of
telecommunications
services.
The
Association also recommends that an independent complaints resolution
mechanism be accompanied by good, accessible information for members of the
public.
The
information should include:
a.
the purpose and functions of the service;
b.
how to make contact with the service;
c.
rights and responsibilities of both service providers and consumers;
d.
relevant legislation; and
e.
case studies of other consumers who have experienced problems and how
these
have been resolved
Compulsory
membership
The
Association is of the opinion that the complaints resolution mechanism should be
compulsory for all telecommunications service providers. This is based on our
experience with other independent complaints
schemes, such as that of the Electricity
sector. Our bureau workers find that the
problems of clients whose providers are not
members of the Electricity Commissioner
Complaints scheme can be far more difficult
to deal with and resolution in these cases is
often harder to achieve. A compulsory
scheme
would ensure:
a.
Speedier and more effective resolution of consumer complaints
b.
Consistent, high-level and equal protection for consumers
Code of Practice
We
recommend that a Code of Practice for telecommunications providers be
established to bind providers to a minimum
set of standards for their dealings with
customers.
A
Code of Practice would:
a.
Establish clear rights and responsibilities for both providers and consumers;
b.
Ensure marketing and sales practices are fair and appropriate; and
c.
Provide benchmark standards for the complaints resolution process
The
Association believes that there should be equal consumer/industry representation
in the development and regular review of the
Code. This will ensure the Code’s
robustness,
fairness and its credibility with the public.
The
Code should be reviewed on a regular basis to ensure that it maintains its
relevance and usefulness in this environment
where industry development – including
new
technologies, convergence of services etc – is happening at an increasing
pace.
We
recommend that the Code of Practice include hardship policies and programs. It
is
not uncommon for our bureaux to deal with
individuals and families that are forced to
disconnect their standard household
telecommunications services because they cannot
meet the payments. When this happens both the
client and the provider lose out – the
client loses an essential service and the
provider loses a customer. Strategies to assist
low income consumers to continue to use and
pay for essential telecommunications
services
out of available income would be of benefit to both consumer and provider.
Such
strategies could include:
a.
Flexible and responsive billing cycles to assist households in making
payments;
b.
Alternative billing/payment arrangements;
c.
Budgeting and arrears payment plans, e.g. allowing households to pay
debt
and future consumption over a 12-month period;
d.
Assistance through referral to local community agencies; and
e.
Establishment of a supportive and coordinated working relationship
between telecommunications service
providers’ and local
community/welfare
agencies
Summary
of Recommendations
The
Association recommends that:
A
mechanism to provide independent facilitation of resolution of users'
telecommunications service performance concerns should be established;
An
independent complaints resolution mechanism be accompanied by good, accessible
information for members of the public;
The
complaints resolution mechanism should be compulsory for all telecommunications
service providers;
A
Code of Practice for telecommunications providers be established to bind
providers to a minimum set of standards for their dealings with customers;
There
should be equal consumer/industry representation in the development and regular
review of the Code;
The
Code should be reviewed on a regular basis; and
The
Code of Practice includes hardship policies and programs.
Conclusion
Please contact the
Association if you have any questions or seek points of
clarification
on our submission.
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