Unlimited Credit – Overcommitment (not premium rate services)

The TIO commonly investigates billing complaints where the complainant has been billed for an uncharacteristically high value of telephone calls or internet charges, and finds themselves in a position of overcommitment.

Overcommitment by consumers of telephone services most often arises as a result of calls to third-party services, including 190X premium rate services and other services accessed via an international prefix. This is dealt with specifically under the position statement Unlimited Credit - Overcommitment (premium rate services).

Overcommitment can also arise through calls to ordinary long distance and mobile numbers, and as a result of excess internet usage charges. Where a consumer brings a complaint to the TIO about a bill(s) for an uncharacteristically high value of telephone calls or internet charges, the TIO will consider investigating depending on the individual circumstances of the complaint. In deciding whether or not to investigate, and in resolving such complaints, the TIO will consider the law, good industry practice and what is fair and reasonable in all the circumstances having regard to:

• once the carrier became aware or ought reasonably to have become aware that the customer was incurring an unusual amount of debt, what steps the carrier took to minimise or limit the customer’s access to credit or exposure to debt, including the existence of any systems or processes to monitor the level of debt of any customer and compliance with those systems or processes;
• once the carrier became aware or ought reasonably to have become aware that the customer was incurring an unusual amount of debt, what advice or warning the carrier may have given to the customer about the level of debt, including about call barring;
• what steps the customer took, or ought reasonably have taken, to limit any overcommitment on their part, including the use of call barring;
• whether a customer has agreed to use alternative products/services that may be available in the market place to obviate debt, eg prepaid services;
• the usage and payment history of the customer.

Last updated: 6 August 2003
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