Telstra slapped with warning over cancelled plans

The major telco is in hot water after it was found to have suspended the services of thousands of people without telling them.

Telstra has been slapped with a warning after it was found to have restricted or suspended the accounts of more than 5400 customers without giving them notice.

An investigation by the Australian Communications and Media Authority (ACMA) found the telco breached consumer protection rules in its actions.

Between May and July 2022, Telstra took action to limit the services to 5410 customers after they did not pay their bills.

However, it failed to give them at least five working days’ notice as required under the Telecommunications Consumer Protections Code, ACMA said.

ACMA has warned Telstra after it breached consumer protection rules. Picture: NCA Newswire / Gaye Gerard

Customers were prevented from making outbound calls except to emergency services and Telstra and some were prevented from receiving incoming calls.

ACMA Chair Nerida O’Loughlin said telcos must take extra care when it comes to taking actions that disrupt people’s services.

“Phone and internet connections are essential for our everyday lives. We use them for work, education, banking, health services and social connection,” Ms O’Loughlin said.

“With the current cost of living pressures, many Australians are doing it tough. By limiting peoples’ services without notice Telstra likely caused these people significant additional stress.”

Telstra says it reported itself to ACMA over the blunder that left customers with unpaid bills with restricted services.

“We quickly identified a system error that meant customers without an email address on credit management didn’t receive a letter letting them know that their service would be restricted unless payment was made,” a Telstra spokesperson said.

“We fixed the issue in our system and contacted the impacted customers.

Telstra and other telcos must give at least five days warning to customers before shutting off services. Picture: NCA Newswire / Gaye Gerard

“We take this matter seriously and understand this breakdown in process caused frustration for customers.”

Telstra has not been fined as a result of its actions but have received a formal warning from ACMA.

“Telcos are obliged to help people facing financial hardship and there are a range of options available to help customers manage their bills,” Ms O’Loughlin said.

Those who find themselves in a difficult position are urged to contact their telco, with options such as delaying payment, discounting fees and switching plans available.

Originally published as Telstra slapped with warning over cancelled plans