Refusal by a provider to release service due to outstanding debt

From time to time the TIO receives complaints about providers refusing to "release" a service due to an outstanding debt.

In the TIO's view, it is not reasonable for a provider to dispute or otherwise prevent the transfer of a service (long distance or whole service) to another provider on the basis that the customer in question has an outstanding debt. Nor does the TIO consider it reasonable for a provider to prevent a customer from disconnecting their service and then reconnecting it with another provider because of an outstanding debt.

Existing regulation does not allow the losing service provider to reject a transfer because the customer has an outstanding debt (Clause 11.8 of ACIF Code C515:200 Pre-selection).

The TIO will investigate these kinds of complaints and will usually expect a provider to release a customer for transfer or reconnection and pursue payment through its usual credit management procedures. The TIO will investigate complaints about not only the standard telephone service but also complaints about ADSL services and a provider's refusal to remove the necessary system codes to allow for reconnection of a service through another provider.

Last updated: 12 May 2008