Service provider 'legacy debt'

In the past, the TIO has received complaints from consumers who receive bills from their current provider for call charges that should have been billed by their previous provider. The debt for which these consumers are billed is sometimes referred to as a service provider 'legacy debt'. This situation most typically arises where a carrier has no record of receiving payment from a service provider which resells its services. It is often unclear whether or not the end-user has ever paid - or even received - a bill for the charges. The service provider might claim that a bill was never sent; the customer might claim that they previously paid for the call charges. In some cases, the situation is further complicated by the fact that the carrier and the service provider entered into an agreement which they argue allows the underlying carrier to bill for the particular call charges. Where a customer can produce evidence that they previously paid for charges, the TIO will expect a provider to cease any collections action. In the absence of payment evidence, the TIO has in the past assisted complainants to obtain itemised call details and to negotiate a suitable payment arrangement.

It is unclear at this time what position the TIO would take should this issue re-emerge in the future. Under Clause 6.5.5 (b) (i) of the Telecommunications Consumer Protections (TCP) Code, a Supplier will not the rules about delayed billing of charges where 'delays [are] due to charges suspended while under dispute between Suppliers.' The TIO would re-evaluate its position if and when this issue re-emerges.

>Next: Short duration calls