Latest news with #Gebert
Perth Now
4 days ago
- Business
- Perth Now
Telcos still failing to support struggling customers
Telecommunication companies have been put on notice for consistently failing to support customers facing financial hardship. Although new financial hardship standards came into effect in 2024, customers are still reporting that simple requests for help are being rejected. A Telecommunications Industry Ombudsman report published on Thursday, based on a review of more than 900 customer complaints, found some telcos were causing or adding to the financial stress of their customers. Ombudsman Cynthia Gebert said the report confirmed that more needed to be done by companies to meet their obligations and support people struggling financially. "We are seeing that telcos aren't consistently supporting consumers and that has a real impact on people's lives and their ability to stay afloat," she told AAP. The report found some telcos even refused to help customers who proactively sought support, including a woman who fell into hardship after experiencing family violence and health complications. She had purchased a device at a store and was talked into additional products but wasn't informed about any of the extra costs. The woman was unable to pay for the extra services and was not offered any help from her telco. The telco ended up selling her debt to a debt collection agency and listed a default on her credit file, which totalled $7000. The cost was waived after she contacted the communications watchdog. "We want people to feel confident that when they reach out to their telco for the help they are entitled to, they'll get the support they need that is right for their circumstances," Ms Gebert said. About three-in-five Australians have experienced some form of financial difficulty, with 41 per cent experiencing high or chronic financial difficulty. Telcos contacted by the communications watchdog indicated increased numbers of customers seeking financial support over the past year, due to ongoing cost-of-living pressures. The report also found that customers prioritising their phone and internet bills over essentials like food or rent, fearing disconnection. Many consumers also reported finding it difficult to initiate a conversation with their telco about financial hardship, with some feeling their telco was unsympathetic. "Phone and internet are so critical to our ability to function in day-to-day society," Ms Gebert said. "It's (how) you access government services, banking services … If you are disconnected, the wide ranging impacts on your ability to function are huge and it can compound." The report's findings come after the introduction of new industry rules aimed at improving financial hardship support in March 2024. The new rules require telcos to provide a minimum of six different options for assistance to customers, and to only disconnect consumers as a measure of last resort.
Sky News AU
4 days ago
- Business
- Sky News AU
Struggling Aussies prioritising phone and internet bills over food, Telecommunications Industry Ombudsman report reveals
Some low-income Australians have prioritised paying their phone or internet bill over essentials like food or rent, a shock new report has shown. The Telecommunications Industry Ombudsman (TIO) Cynthia Gebert has handed down a review of over 900 complaints about financial hardship in the 12 months to March 30. The TIO's report said price pressures forced many customers to make difficult decisions when balancing their budgets. Poor treatment of customers seeking help by service staff also weighed on struggling Australians. "Some customer service staff made them feel belittled or guilty for requesting help," the report reads. "Some consumers also told us they chose to pay for their telco services over other essential items such as rent or food." One customer said their financial hardship worsened after their telco direct debited money from their account despite having a payment plan in place. 'This is devastating to us, as we are already struggling to meet basic needs, and I need to feed my 5-year-old and pay for petrol to get her to kindergarten,' the anonymous customer said. 'We live in a rural region and even struggle to pay the petrol to seek out the food relief we use.' Another anonymous customer said she asked her telco for an extra week to pay her bill as she needed cash for an urgent car repair. The telco agreed but took the money out on the regular day and refused her a refund, leaving her with limited cash for another week. Ms Gebert said access to phone and internet services should not be considered a luxury, but rather essential services vital for everyday life. 'The consequences of losing access to your phone and internet can be serious, it can lead to people losing work and being unable to access critical support. From there, things can continue to spiral,' she said. 'Losing income and support services can compromise people's food security, safety and health. 'People may be just managing their basic living expenses like food, rent, and petrol, and be one unexpected phone bill or life event away from falling into hardship. 'It's at these critical moments that accessing the support you're entitled to from your telco is more important than ever – so you can manage your bills and stay connected." The shocking report also drew concern from ACOSS' chief executive Cassandra Goldie, who said it highlighted how reliant many of the poorest Australians relied on telco services. 'It's absolutely devastating that people across Australia are going without food just to stay connected," Ms Goldie told "A phone should not be a luxury, but people are going without essentials to pay for it. "For many on the lowest incomes, a phone is the only way to stay in touch with loved ones, access government services or apply for jobs." She noted the report was "another warning" that low-income support payments were making it "impossible for people to meet the cost of essentials". 'When your income doesn't even cover food and rent, staying connected becomes another impossible choice and the system is clearly failing them," Ms Goldie said. 'Social security is meant to provide a safety net but right now it's locking people into poverty. "Without urgent action to lift payments above the poverty line, more people will be pushed into impossible choices just to survive. "We need urgent reform to lift JobSeeker and related social security payments so everyone can cover the basics.' The report showed some customers sought help before they missed payments but were turned away by their provider who said they could not help until payments were officially overdue. There were also reports that some telcos experienced errors that exacerbated financial pain for some customers. Impacted people also raised complaints with the TIO when telcos withdrew more than expected or processed payments on incorrect dates. 'Telcos need to actively rebuild trust with their consumers, and prioritise protecting consumers who are experiencing, or at risk of, financial hardship,' Ms Gebert said. 'We urge telcos to embed the flexibility and understanding that must be part of the way you do business when you provide an essential service to the community.' The recent report marks the first full year since the Australian Communications and Media Authority unveiled the Telecommunications (Financial Hardship) Industry Standard 2024 that requires telcos to establish and promote clear policies for financial hardship.
The Advertiser
4 days ago
- Business
- The Advertiser
Telcos still failing to support struggling customers
Telecommunication companies have been put on notice for consistently failing to support customers facing financial hardship. Although new financial hardship standards came into effect in 2024, customers are still reporting that simple requests for help are being rejected. A Telecommunications Industry Ombudsman report published on Thursday, based on a review of more than 900 customer complaints, found some telcos were causing or adding to the financial stress of their customers. Ombudsman Cynthia Gebert said the report confirmed that more needed to be done by companies to meet their obligations and support people struggling financially. "We are seeing that telcos aren't consistently supporting consumers and that has a real impact on people's lives and their ability to stay afloat," she told AAP. The report found some telcos even refused to help customers who proactively sought support, including a woman who fell into hardship after experiencing family violence and health complications. She had purchased a device at a store and was talked into additional products but wasn't informed about any of the extra costs. The woman was unable to pay for the extra services and was not offered any help from her telco. The telco ended up selling her debt to a debt collection agency and listed a default on her credit file, which totalled $7000. The cost was waived after she contacted the communications watchdog. "We want people to feel confident that when they reach out to their telco for the help they are entitled to, they'll get the support they need that is right for their circumstances," Ms Gebert said. About three-in-five Australians have experienced some form of financial difficulty, with 41 per cent experiencing high or chronic financial difficulty. Telcos contacted by the communications watchdog indicated increased numbers of customers seeking financial support over the past year, due to ongoing cost-of-living pressures. The report also found that customers prioritising their phone and internet bills over essentials like food or rent, fearing disconnection. Many consumers also reported finding it difficult to initiate a conversation with their telco about financial hardship, with some feeling their telco was unsympathetic. "Phone and internet are so critical to our ability to function in day-to-day society," Ms Gebert said. "It's (how) you access government services, banking services … If you are disconnected, the wide ranging impacts on your ability to function are huge and it can compound." The report's findings come after the introduction of new industry rules aimed at improving financial hardship support in March 2024. The new rules require telcos to provide a minimum of six different options for assistance to customers, and to only disconnect consumers as a measure of last resort. Telecommunication companies have been put on notice for consistently failing to support customers facing financial hardship. Although new financial hardship standards came into effect in 2024, customers are still reporting that simple requests for help are being rejected. A Telecommunications Industry Ombudsman report published on Thursday, based on a review of more than 900 customer complaints, found some telcos were causing or adding to the financial stress of their customers. Ombudsman Cynthia Gebert said the report confirmed that more needed to be done by companies to meet their obligations and support people struggling financially. "We are seeing that telcos aren't consistently supporting consumers and that has a real impact on people's lives and their ability to stay afloat," she told AAP. The report found some telcos even refused to help customers who proactively sought support, including a woman who fell into hardship after experiencing family violence and health complications. She had purchased a device at a store and was talked into additional products but wasn't informed about any of the extra costs. The woman was unable to pay for the extra services and was not offered any help from her telco. The telco ended up selling her debt to a debt collection agency and listed a default on her credit file, which totalled $7000. The cost was waived after she contacted the communications watchdog. "We want people to feel confident that when they reach out to their telco for the help they are entitled to, they'll get the support they need that is right for their circumstances," Ms Gebert said. About three-in-five Australians have experienced some form of financial difficulty, with 41 per cent experiencing high or chronic financial difficulty. Telcos contacted by the communications watchdog indicated increased numbers of customers seeking financial support over the past year, due to ongoing cost-of-living pressures. The report also found that customers prioritising their phone and internet bills over essentials like food or rent, fearing disconnection. Many consumers also reported finding it difficult to initiate a conversation with their telco about financial hardship, with some feeling their telco was unsympathetic. "Phone and internet are so critical to our ability to function in day-to-day society," Ms Gebert said. "It's (how) you access government services, banking services … If you are disconnected, the wide ranging impacts on your ability to function are huge and it can compound." The report's findings come after the introduction of new industry rules aimed at improving financial hardship support in March 2024. The new rules require telcos to provide a minimum of six different options for assistance to customers, and to only disconnect consumers as a measure of last resort. Telecommunication companies have been put on notice for consistently failing to support customers facing financial hardship. Although new financial hardship standards came into effect in 2024, customers are still reporting that simple requests for help are being rejected. A Telecommunications Industry Ombudsman report published on Thursday, based on a review of more than 900 customer complaints, found some telcos were causing or adding to the financial stress of their customers. Ombudsman Cynthia Gebert said the report confirmed that more needed to be done by companies to meet their obligations and support people struggling financially. "We are seeing that telcos aren't consistently supporting consumers and that has a real impact on people's lives and their ability to stay afloat," she told AAP. The report found some telcos even refused to help customers who proactively sought support, including a woman who fell into hardship after experiencing family violence and health complications. She had purchased a device at a store and was talked into additional products but wasn't informed about any of the extra costs. The woman was unable to pay for the extra services and was not offered any help from her telco. The telco ended up selling her debt to a debt collection agency and listed a default on her credit file, which totalled $7000. The cost was waived after she contacted the communications watchdog. "We want people to feel confident that when they reach out to their telco for the help they are entitled to, they'll get the support they need that is right for their circumstances," Ms Gebert said. About three-in-five Australians have experienced some form of financial difficulty, with 41 per cent experiencing high or chronic financial difficulty. Telcos contacted by the communications watchdog indicated increased numbers of customers seeking financial support over the past year, due to ongoing cost-of-living pressures. The report also found that customers prioritising their phone and internet bills over essentials like food or rent, fearing disconnection. Many consumers also reported finding it difficult to initiate a conversation with their telco about financial hardship, with some feeling their telco was unsympathetic. "Phone and internet are so critical to our ability to function in day-to-day society," Ms Gebert said. "It's (how) you access government services, banking services … If you are disconnected, the wide ranging impacts on your ability to function are huge and it can compound." The report's findings come after the introduction of new industry rules aimed at improving financial hardship support in March 2024. The new rules require telcos to provide a minimum of six different options for assistance to customers, and to only disconnect consumers as a measure of last resort. Telecommunication companies have been put on notice for consistently failing to support customers facing financial hardship. Although new financial hardship standards came into effect in 2024, customers are still reporting that simple requests for help are being rejected. A Telecommunications Industry Ombudsman report published on Thursday, based on a review of more than 900 customer complaints, found some telcos were causing or adding to the financial stress of their customers. Ombudsman Cynthia Gebert said the report confirmed that more needed to be done by companies to meet their obligations and support people struggling financially. "We are seeing that telcos aren't consistently supporting consumers and that has a real impact on people's lives and their ability to stay afloat," she told AAP. The report found some telcos even refused to help customers who proactively sought support, including a woman who fell into hardship after experiencing family violence and health complications. She had purchased a device at a store and was talked into additional products but wasn't informed about any of the extra costs. The woman was unable to pay for the extra services and was not offered any help from her telco. The telco ended up selling her debt to a debt collection agency and listed a default on her credit file, which totalled $7000. The cost was waived after she contacted the communications watchdog. "We want people to feel confident that when they reach out to their telco for the help they are entitled to, they'll get the support they need that is right for their circumstances," Ms Gebert said. About three-in-five Australians have experienced some form of financial difficulty, with 41 per cent experiencing high or chronic financial difficulty. Telcos contacted by the communications watchdog indicated increased numbers of customers seeking financial support over the past year, due to ongoing cost-of-living pressures. The report also found that customers prioritising their phone and internet bills over essentials like food or rent, fearing disconnection. Many consumers also reported finding it difficult to initiate a conversation with their telco about financial hardship, with some feeling their telco was unsympathetic. "Phone and internet are so critical to our ability to function in day-to-day society," Ms Gebert said. "It's (how) you access government services, banking services … If you are disconnected, the wide ranging impacts on your ability to function are huge and it can compound." The report's findings come after the introduction of new industry rules aimed at improving financial hardship support in March 2024. The new rules require telcos to provide a minimum of six different options for assistance to customers, and to only disconnect consumers as a measure of last resort.
Perth Now
14-05-2025
- Business
- Perth Now
Telco complaints a symptom of cost-of-living crisis
Cash-strapped Australians fear being cut off from their phone and internet services as telcos refuse to support struggling customers, resulting in a spike in complaints. Reports to the telecommunications watchdog about financial hardship or repayment issues spiked by 71.9 per cent between January and March, compared to the same period in 2024. Despite complaints falling 8.2 per cent since the previous quarter, the Telecommunications Industry Ombudsman remains concerned. Telcos need to do more to make sure people get the support they need if they're struggling to keep on top of bills, ombudsman Cynthia Gebert said. "It's a stark reminder that the cost-of-living crisis continues to impact communities across Australia," she said. Recurring themes included companies refusing payment plans or extensions, offering unsuitable payment arrangements and service disconnection, suspension or restriction. Family violence and ongoing health issues rendered Parisa's (not her real name) bills unmanageable. She tried to work out a payment plan with her provider but the $200-per-month offer was unachievable. She told the ombudsman late fees continued to accumulate and she worried her services could be cut off. Telcos lack tailored support and repayment options for customers, the ombudsman said, suggesting disconnection should be a last resort. "People don't want to be in debt, but they need payment plans they can actually afford," Ms Gebert said. Australians lodged 15,385 complaints about their phone and internet services, marking a 0.6 per cent increase since the previous quarter and a drop of 2.1 per cent compared to the same period in 2024. Poor mobile coverage reports rose 25.3 per cent, with Telstra accounting for more than half of them, while about one in 10 complaints involved the recent 3G network shutdown. For Danny (not his real name), who lives in remote Australia prone to bushfires and flooding, the issue is one of life or death as he relies heavily on mobile service to contact emergency services and stay up to date with hazard information. He is increasingly worried about his family's safety due to ongoing problems with reliable mobile phone service, which means he can't contact emergency services when he has no connection. Small business complaints rose for the second quarter to 1767, up 6.9 per cent, with the most significant increases related to poor mobile coverage and intermittent service or dropouts. Persistent mobile and internet problems are seriously impacting small businesses' ability to provide good customer service and operate efficiently, Ms Gebert said. "It can impact their reputation, customer service and ability to trade - ultimately it affects people's livelihoods and ability to feed their families," she said. Inadequate fault testing, where issues were not fixed, had the largest increase in complaints - up 26.9 per cent. Complaints were up across the board except in Queensland, where they fell 6.6 per cent since the previous quarter. NSW had the highest number of reports with 4850, while Victoria had the highest complaints per 1000 people.
