Telstra shows leadership by axing $2.20 fee

CHOICE calls on other telcos to follow suit

CHOICE has welcomed Telstra’s decision to axe its controversial ‘administration’ fee which forced some customers to pay $2.20 to settle their bills over the counter or by post by cash or cheque.

It’s now calling on other telcos who charge similar but smaller fees to drop the charges or face the competitive pressure.

The consumer group’s chief executive, Nick Stace, contacted his Telstra counterpart, David Thodey, in September, personally asking him to change the unpopular policy in favour of a fairer system, after personally hearing many complaints from CHOICE members.

Mr Stace said it was more effective and equitable to use the carrot of incentives, such as discounts on bills to those who elect to pay electronically, as opposed to the stick — of unfair fees — for those who do not.

“Telstra is to be congratulated for putting their customers first by making this significant move. It is effectively shining the spotlight on other telcos who continue to try and make us pay to pay. Paying cash should not be punishable,” he said.

“David Thodey is to be congratulated for showing leadership on this issue and making real his commitment to be more customer focused.”

CHOICE heard from many consumers old and young who felt, despite some exemptions to the fee for pensioners and disabled groups, they were being penalised by the charge.

CHOICE is now calling on the other telcos to drop similar fees charged to their customers who pay in cash or by cheque.

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Telstra axes bill fee

CHOICE welcomes Telstra’s move to get rid of fees that have angered customers since their introduction.

4 Nov 2009 | The controversial $2.20 “administration fee”, charged to Telstra customers who use certain methods of payment, has been dropped after customer backlash.


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