Contents

1. From the Ombudsman’s Desk: Complaints Provide a Window on Systemic Problems

2. TIO and ACMA information sharing

3. Important changes to TIO Suspension of Credit Management Procedure

4. The TIO assures its members that it has no association with Yellow Billing

5. How ready is your business to handle unwelcome or life-threatening call complaints?

6 . Position Statement update - Information provided during a sales transaction

1. From the Ombudsman’s Desk - Complaints Provide a Window on Systemic Problems

Sometimes a company may take the view that “we have thousands of customers and we only have a small number of complaints, so we must be doing a good job”.

However, without an analysis of these complaints, companies will miss opportunities to resolve matters early and to satisfy customers. At the TIO, we can help with this analysis. Along with quarterly invoice, the TIO provides the members with copies of our system notes that record what the complainant has told us and the number and type of complaint the member has received. This is invaluable data that can be used to analyse the cause of the complaint and what the customer’s experience has been.

Although some complaints do arise from very unique situations and a business can move on once these have been resolved, other complaints can point to recurring problems in a business’ practices or products. For this reason, analysis can be very useful.

TIO data has shown that of the complaints that are referred back to the member at Level 1, approximately 90% are then resolved. Members who follow through with these customers exploring what caused them to come to the TIO, can learn valuable lessons that can be fed back into their business processes.

2. TIO & Australian Media & Communications Authority (ACMA) information sharing

As part of an information sharing agreement between the TIO and ACMA, each organisation will sometimes exchange the following information:

• advice about telecommunications consumer complaint investigations and the application of legislative and alternative dispute resolution remedies; and
• telecommunications and internet industry service and complaint trends; and
• compliance and enforcement action related to membership of the TIO scheme.

ACMA will also use the TIO’s member distribution list to disseminate information to telecommunication companies affected by legislative changes in the industry or to invite discussion on proposed changes.

On Friday 18 April 2008, an email advising of the release of an ACMA Discussion Paper was sent to all members of the TIO. Unfortunately, due to an administrative error on ACMA’s part, the email included all the email address details of the recipients of the email.

ACMA has subsequently apologised for the error and taken steps to ensure that the mistake is not repeated.

3. Important Changes to TIO Suspension of Credit Management Procedure

The TIO is trialling a new request for suspension of credit management process. We are continuously looking for ways to reduce unnecessary correspondence trails.

The benefits of this to Members include a reduction in paper used and more efficient use of TIO Officers’ time which should translate to lower TIO Member Costs. This new system should also standardise the approach the TIO takes in notifying a Member of amounts in dispute.

The new suspension of Credit management request will be incorporated in the email notifications for Pending Level 2. As a result of this, it is crucial for you to keep your email contacts lodged with the TIO up to date and to check the inbox everyday.

It is also important to understand the expectation that the TIO has that industry members adhere to the provisions of the ACIF Complaint Handling Code in relation to suspending credit management on disputed amounts.

The TIO does, and will continue to advise complainants to pay undisputed amounts owing.

Please click here to view a copy of the new Pending Level 2 email.

4. The TIO assures its members that it has no association with Yellow Billing

It has recently been brought to the TIO’s attention by its members that a company named Yellow Billing Ltd has recently been approaching TIO industry members with an implication that the TIO has supplied the contact details. In fact, they have visited our website and obtained the information there, using the standard Member Search function.

The TIO has, through its lawyers, requested that any implication that the TIO actively supplied the information be removed and Yellow Billing has agreed to this.

The TIO does not provide membership lists for commercial purposes.

5. How ready is your business to handle complaints about unwelcome or life threatening calls?

The TIO has seen an increase in complaints about the handling of consumers’ life threatening and unwelcome calls. An analysis of the complaints highlights that unwelcome calls are the main cause of complaint. These include where a consumer is receiving calls from an unknown party that is harassing them and/or calls that are tying up a telephone line for an unreasonable amount of time.

The complaint data indicates that there is a lack of understanding from consumers and service providers about how unwelcome calls should be handled.

In the TIO’s experience, these types of complaints can be stressful for consumers receiving unwelcome calls as well as for staff at service providers trying to help to stop them, and they can escalate quickly. This is especially the case when the procedure for handling unwelcome calls is unclear or non-existent.

The industry code ACIF C525:2006 Handling of Life Threatening and Unwelcome Calls gives a clear outline of the steps to be taken when one of your customers reports unwelcome calls and clarifies the relationships required between service providers to investigate and resolve unwelcome call complaints. It also provides useful proformas and flowcharts to help set up your own procedure.

The TIO recommends that its members ensure they have a clear procedure for handling unwelcome call complaints based on the ACIF code. It is important that customer service staff understand this procedure and have easy escalation points. It is also important to have clear literature available for your customers explaining the steps that you can take, what outcomes can be reasonably expected, how other parties (such as other service providers and law enforcement agencies) can/will be involved and where consumers should go if matters are life-threatening.

6. Position Statement updates –‘Information provided during a sales transaction’

On 14 April 2008, the TIO announced a new position statement to cover ‘sales transactions’.

By way of reminder, the TIO’s Position Statements set out the TIO’s approach to investigating and resolving particular categories of complaints. They apply equally to residential and small business complainants, unless specifically stated otherwise.

The TIO’s Position Statements reflect and acknowledge industry practice about various telecommunications issues and more often concern issues about which there is no or minimal guidance. As the TIO continues to receive complaints about the accuracy of advice provided at the point of sale, and because there is no legislation or industry code to guide members, the TIO considered this position statement was needed.

Although most of the information contained in the position statement will not be new to members, as it merely reflects how the TIO has been investigating these complaints for a number of years, an important change has been made to the way the TIO will investigate complaints concerning the advice provided by a telemarketer or sales representative.

As set out in the position statement, the TIO will now ask members to provide recordings of entire conversations and not just a recording of the ‘voice signature’. This information will be requested when, for example, a complainant claims that the product or billing does not reflect what they claim they were advised by the telemarketer or sales representative prior to the formation of the contract.

While the TIO acknowledges that not all members currently retain entire recordings of a telemarketing conversation, the TIO considers that it is good industry practice to do so. The TIO also considers that being able to provide a recording of the entire conversation will prevent complaints from reaching this office as the member will have sufficient evidence to either confirm or refute complainants’ claims.

As a measure to prevent complaints concerning telemarketing point of sale advice, the TIO notes that some members will ‘warm’ transfer a potential customer from the telemarketer to an Australian based compliance area to ensure that the customer has understood the terms and conditions of the contract. Members that have adopted this method have seen a significant reduction in complaints concerning point of sale advice.
A copy of the ‘sales and transactions’ Position Statement can be located at: ‘Information provided during sales transaction’