Telco providers have been selling contracts for multiple devices — including tablets, drones and smart watches — without proper checks to see if the consumer can afford the additional costs.
A telco industry watchdog investigation has found poor sales practices and a culture of putting profits ahead of consumers is driving up consumer debt, leaving people struggling to pay their bills.More than 7,400 people complained about problems managing their telco debt in the first six months of 2018The latest Telecommunications Industry Ombudsman's report found staff were more focused on achieving sales than assessing whether a product was suitable for consumers.
"They're telling us that having bought a product or service that they've quickly fallen into arrears and not been able to pay," Ombudsman Judi Jones said. The woman already had an outstanding debt of $3,500 with the same telco, when she was sold two new mobile phone plans. "She was retired, her sole income was a disability pension, yet she was asking for two new plans and two new expensive handsets. She also had limited English, so there should have been a flag," Ms Jones said.
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