When your phone or internet service can be cut off
Your telco can temporarily block, restrict or disconnect your phone or internet service if:
- you have not been paying your phone or internet bills
- they think your account has been used illegally
- you haven’t met your agreed arrangement for financial hardship assistance.
Find out more about financial hardship and payment assistance to help keep you connected.
Customers experiencing financial hardship
If you are struggling to pay a bill, you may be in financial hardship. There are many reasons why people may not be able to pay a bill:
- unwell
- unemployed
- domestic or family violence
- change in personal or family circumstances, including death of a family member
- on a low or reduced income
- unexpected events or changes to your income or expenses
- a natural disaster.
Consumers experiencing domestic, family or sexual violence
Your telco can lift or reverse any disconnection, suspension or any restriction to your services if you make an urgent request because of domestic, family or sexual violence.
Find out more about your options.
Your telco must give you notice
If your telco knows you’re in financial hardship
If your telco knows that you’re experiencing financial hardship, they can only temporarily block or disconnect your service as a last resort.
They must tell you in writing at least 10 working days before taking any action to temporarily block or disconnect your service. They must tell you:
- whether your service will be temporarily blocked or disconnected
- when it is due to happen
- why they are doing it
- all the charges that may apply
- how this will affect any other services you have with them
- how you can contact them to ask questions; and
- how to contact the Telecommunications Industry Ombudsman and financial counselling services.
If you haven’t met an agreed arrangement
If you haven’t met an agreed arrangement for assistance, your telco must contact you and offer to review the arrangement before they can take action to restrict, temporarily block or disconnect your service.
Determining if you’re in financial hardship
Before taking action against you, your telco must take reasonable steps to first determine whether you are in financial hardship.
For example, your telco might call you or write to you to confirm your situation, particularly if you:
- have more than 2 consecutive overdue bills
- have a total of 3 overdue bills in the previous 6-month period
- owe them more than $200.
If, after taking those steps, your telco determines you are not in financial hardship, then they only have to tell you at least 5 working days before they restrict, temporarily block or disconnect your service.
If your telco restricts, temporarily blocks or disconnects your service
If your service is restricted, temporarily blocked or disconnected, in most circumstances the notice you get from your telco must explain
- when your telco plans to take action
- the impact on any other services you have with them
- contact details for external dispute resolution and financial counselling services, or information about your telco’s payment assistance policy
- that your telco may pass your unpaid debt to a debt collection agency or sell it to a third party
- that a credit reporting agency may list the debt on your file as a ‘non-payment default’
- that they may take legal action to get the money you owe.
Exceptions
Your telco can temporarily block or disconnect your service without any warning, even if you are receiving financial hardship assistance, if they think:
- you or your account is an unacceptably high credit risk
- you have reached a nominated restriction point
- your account has been used illegally.
What you can do
- Contact your telco immediately and tell them you need help to manage your payments. You may be able to stop being disconnected before the cut-off date.
- If you don’t agree with your telco’s actions, contact them as soon as possible to make a complaint.
- Your complaint will be treated as urgent if you are in financial hardship or are a landline customer with a priority assistance service.
- If you are not happy with how your telco handles your complaint, you can escalate your complaint to the Telecommunications Industry Ombudsman.
If you need help to pay your bill, ask your telco for help. If you are eligible for assistance, they will work with you to help you manage your payments and keep you connected.
If you need free financial counselling or urgent help, see the Moneysmart website.