Logan senior citizen takes on Optus over ‘outrageous’ $2.20 non-direct debit fee

A Logan senior citizen is challenging Optus over a $2.20 fee for not using direct debit, calling it unfair to pensioners and those on fixed incomes.

A screenshot of the bill showing the $2.20 fee and a fee for receiving a paper bill.

A Logan senior citizen is taking on telecommunications giant Optus over a $2.20 fee added to his phone bill for not using the company’s direct debit service and a separate $2.20 for receiving a paper bill.

Waterford West resident Warren Bloomfield said he felt the extra charges unfairly targeted pensioners and those living on fixed incomes.

“If not illegal, it is definitely unethical and unfair, especially to pensioners and anyone living on a fixed income,” he claimed.

“Pensioners budget from fortnight to fortnight, and any direct billing taken from their accounts before payday may cause a default on their service.

“I don’t know if any other telco providers or companies practise this.”

Mr Bloomfield said he deliberately avoided direct debit because of concerns about loss of control, dishonour fees and withdrawals at inconvenient times.

He also raised privacy concerns following Optus’ major data breach, which saw private customer details accessed by a third party.

Federal MP for Forde Rowan Holzberger has taken up Mr Bloomfield’s fight, describing the charge as “an outrageous cash grab”.

Mr Holzberger said he had written to Optus urging the fee to be scrapped and would follow up if no action was taken.

Optus responded to questions about the $2.20 direct debit fee offering to help Mr Bloomfield and speak to him directly.

Optus responded to questions about the $2.20 direct debit fee offering to help Mr Bloomfield and speak to him directly. Picture: The Courier-Mail

It also said it covered “the additional processing and administrative costs associated with non-direct debit payment methods, encouraging customers to use automated options”.

The company said direct debit was a convenient and secure method that did not incur the charge and added that the telco offered support for customers in financial hardship.

“We would also like to reach out to the customer to talk through his options and see how we can help him, if he would be open to that,” the Optus spokesperson said.

The Telecommunications Industry Ombudsman said it has received complaints from customers charged fees for non-direct debit payments.

Ombudsman Cynthia Gebert said people should have the right to choose how they pay for phone and internet services.

The TIO confirmed telcos can charge for non-direct debit payments provided at least one payment method is free.

Proposed code changes would require two free payment options, including one manual method.

The Australian Communications and Media Authority backed up this statement and said telcos must clearly disclose any additional charges and offer at least one free payment method.