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Member
cscoxk
Posts: 2
Registered: ‎05-01-2012
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Accepted Solution

Late payment fees

Telstra have charged me $15 for being late with a payment.  Will Telstra pay me $15 for being early?  Surely it is unreasonable to charge $15 for being a few days late on an invoice of $100.  I believe the recent case on excessive bank fees on penalties makes this a situation where a class action is likely to succeed against Telstra.  Suggest they fix up their penalty nonsense before they are taken to court.

 

It would not be so bad if they had warned me before charging. How much does it cost them to send me a reminder by sms by email before imposing the fee.

 

Community Leader
jokiin
Posts: 2,253
Registered: ‎30-06-2011
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Re: Late payment fees

if the bill was $1000 it would still be a $15 fee for late payment :smileywink:
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Statistically, three out of five people are not the other two
Executive Director, Telstra Digital
gerdschenkel
Posts: 368
Registered: ‎08-07-2011
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Re: Late payment fees

If you'd like to take full control of your billing, incl receiving a bill notice email, it's best to sign up for MyAccount here https://www.my.telstra.com.au/myaccount/register This can help you paying on time and avoiding late fees
Gerd Schenkel
Telstra Digital
Community Leader
jokiin
Posts: 2,253
Registered: ‎30-06-2011

Re: Late payment fees

I just set mine up for direct debit, can't forget then
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Statistically, three out of five people are not the other two
Community Founder (Retired)
Ben_F
Posts: 5,608
Registered: ‎14-07-2011
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Re: Late payment fees


cscoxk wrote:

 

It would not be so bad if they had warned me before charging. How much does it cost them to send me a reminder by sms by email before imposing the fee.

 


We remind you on every single bill that we have ever sent you.

 

And the others are right. Direct Debit is the way to go :smileyhappy:.

 

B.

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Community Leader
Kalak
Posts: 2,325
Registered: ‎30-06-2011

Re: Late payment fees

Every bill includes a reminder on the front page.

 

http://i43.tinypic.com/6rli81.jpg

 

Back in 2000 when Telstra introduced a late payment fee (then at $5) it was estimated to cost them in the area of $180 million a year, or around $36 per late paid bill.  This includes costs such as their inability to utilise those funds, potential lost interest, the cost of running credit management teams etc. 

 

So even if we use a figure that is 12 years old now, the late payment fee is still less than half the 'cost' of you paying your bill late.

 

As suggested you can use online services to set up bill reminders, and there is always direct debit.  The bill is issued a few weeks before the debit is due, giving you plenty of time to query anything that you don't understand/agree with before the money comes out.


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New Member
shell020485
Posts: 1
Registered: ‎13-03-2012

Re: Late payment fees

I Know Telstra has a responsibility to shareholders, but I am sure in their record profits they factor in late payments, and I too receive late payment fees of $15 inconsistently mind you on bills of $100.00, no reminder. The reminder might come on the next bill, but by that time I have already paid my previous bill and am still charged late payment fee. Also, reasons do relate to my address of 44A not 44, and previously have had mail not delivered, and have too previously been registered to receive bills online, but never logged on, too much time is spet on computers these days!!!!!! Then I checked eventually after telstra stuffup overcharging me late payment fees after funds paid were allocated to another telstra account, and when I printed one of these bills, found many more overcharges for calls that were supposed to be free, and spent more money phoning them and waiting for operators to pick up to rectify the problem which I grew tired of trying after multiple attempts, and to this day, I have not received all of the paper bills I requested on multiple occassions. I just gave money away because I was tired of wasting my time. Next time, I will send them a bill with interest and late fees of course, and if i spend time on the phone, will bill them at my hourly rate + overtime for that too. 

New Member
AussieBob
Posts: 1
Registered: ‎20-04-2012

Re: Late payment fees

Having been a Telstra customer for more than 30 years and have never been late in making payments, I was surprised to find on the one occasion that I was a few days late with payment, Telstra slapped on a $15 late payment fee.

Each Telstra bill indeed states, 'To avoid a late payment fee of UP TO $15.00 please pay by the due date.

This would appear to be an incorrect statement, who decides how much the late payment should be?,certainly there is no human involvement in this, it is just a computer generated bill, which cannot decide for itself, but can only do what it is programmed to do and it is programmed to add $15.

The response from Kalak about events back in 2000 is totally irrelevant today, The only cost to Telstra at this point, could be loss of interest on the amount owing, in my case that could be as high as $0.40, no other costs are involved, there has been no communication, no additional postage, so please tell where a $15 charge can be justified for a computer generated bill.

I have no intention of paying the $15, until such time as Telstra can justify in a fully itemised bill on the make up of the $15, if they are not prepared to do this, this, then they are welcome take legal action against me to recover this fee, just remember the current class action against the banks.

What Telstra have achieved however, is to lose my custom and that of my family, we will all be changing our service provider.

 

  Common Law

Common Law states that late fees cannot be punitive. There is no legal precedent to justify penalizing a person for being late on a payment. Late fees imposed by service providers are unenforceable but most people pay the late fees because it is more convenient to do so than object to paying the fee.Though in the case of a person not paying a debt on time, a business can apply a administration fee but that fee cannot be excessive but must be equivalent to the expense of collecting the unpaid money. It is clear that service providers are using late fees as a way of making money, not just recovering the cost of late payment. 

Community Founder (Retired)
Ben_F
Posts: 5,608
Registered: ‎14-07-2011

Re: Late payment fees

Welcome to CrowdSupport AussieBob.

 

Before I answer your post, I need to clarify that the statements made above were made whilst I was an employee of Telstra, but none of my statements represent Telstra. I'm also no longer an employee, hence the change in language :smileyhappy:

 

The Late Payment Fee used to be split into 3 tiers:

a) $5.00 if the amount outstanding on your bill after the due date is $65.00 or more but less than $130.00;
b) $11.00 if the amount outstanding on your bill is $130.00 or more but less than $200.00; or
c) $15.00 if the amount outstanding on your bill is $200.00 or more.

 

Currently, to simplify the process, the Late Payment fee is $15.00 if the amount outstanding on your bill is $100.00 or more.

 

Telstra invests a fair bit of money in its Credit Management Teams and Departments. These include:

- Cost for Maintaining both a Domestic and Offshore Call Centre for the purpose of Collections Action - This includes inbound communication and outbound communication. Without setting a limit, I know a 200 seat Australian Call centre costs about $1-2 million a month to operate.

- Cost of Providing notices to customers, either via Email, Phone, or Letter

- Cost of Maintaining Credit Management Systems

- Cost of Maintaining a Complaints team for customers who dispute their Credit Management Status

- Cost to Telstra of being unable to utilise the funds that are late

- Cost to Telstra in the sale of those debts, and cost to Telstra in the writeoff of those debts

 

To Compare Telstra with some other Service Providers:

- Synergy (WA Power Company) - $4.75 per overdue notice

- Optus - $15.00 for any amount between $50-$100, add 2% of the amount if its above $100

- Vodafone - $10.00 per month that the amount remains overdue

 

I'm sure that Telstra considers the late payment fee to be enforceable, and should you refuse to pay it, they do reserve the right to disconnect your services, which may incur Termination Fees, and to default list you with a Credit Reporting Agency. That being said, Telstra has been known to waive them if you have had an account for a long time and its an oversight.

 

I wish you luck in finding a service provider that:

a) Doesn't charge a similar fee or;

b) Doesn't insist on Direct Debit as a form of payment

 

B.

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New Member
Molsa190
Posts: 1
Registered: ‎28-04-2012
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Re: Late payment fees

When did the new structuring for charges come in?  Last August I paid my account, however as an oversight I only paid $133 instead of the $133.16 (being the actual bill).  I still got charged $15 in late fees for not paying the full amount by 16 cents.  When I rung up to complain they told me they would reverse it this once.  I'm just interested why I would have been charged $15 as surely using the tiered structure it should have been less.

Member
userNT
Posts: 2
Registered: ‎18-02-2013
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Re: Late payment fees

I totally agree with this comment a $15 late fee which was in excess of 10% per month is unjust. I cancelled my direct billing as for 6 months Telstra incorrectly overcharged on direct debit every month I had to argue a credit I was never copensated for over paying or tthe time & frustration it took. Its very musch a one way street with Telstra.
Member
userNT
Posts: 2
Registered: ‎18-02-2013
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Re: Late payment fees

PS: all direct debit users please note that credit card payments are also considered cash advances, surely Telstra makes enough to accept visa card without penaly.

 

New Member
pnut
Posts: 1
Registered: ‎23-04-2013
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Re: Late payment fees

Hi,

 

I have noticed lately that a few businesses not just telstra have been having a grab for extra cash through late fees.

 

I personally was of the understanding that the fee would have to be inlign with inflation and a fair rate of the outstanding money. This would be a fee of 3% per annum or 30 cents per $100 bill upto 7% per annum or 70 cents per $100 bill on every $100 dollars. The cost of office staff and call centre would be assumed as the cost to do business. Considering that the outstanding amounts would be placed ontop of next bill issue there is no real need to notify the customers especially when only about 2.5 weeks has been given to pay the bill. A resonable fee could be incurred through a disconnection of service but that would be the extent of it to my knowledge.

 

Personally I dont like wasting my time complaining so I'll try to keep it short. If you guys can show me where you legally are allowed by Australian State and or Federal Law to charge a rate or 150% on  per anum on $100per bill late fees, I will promise to reside to the fact and not take legal action.

 

However if you cant supply a legal reference to support your fees, I will be putting together new website where a class action will be started and forthwith serving you with a notice to show cause. Being the good sport that I am I will wait for 2.5 weeks for a reply to this thread the same amount of time as your billing date.

 

Any assistance appreciated.

Raef Mackay

Occasional Visitor
NEWALDICUSTOMER
Posts: 1
Registered: ‎12-05-2013
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Re: Late payment fees

Frankly I am over this late fee penalty and have voted with my feet . I moved to another povder who has no tie in contracts or any other fees.  You need to pay up front, but then the cost is a third of what I am currently paying for the same service.

I have move my three business mobile accounts. In fact the late service fee is almost  half the cost of the moths service for a mobile.

If you are out of contract the change over in easy and only takes about 15 min to complete the online application.

Telstra also unlocked my mobiles so I could use them on a different network free of charge all that was need was a call ask the automated service to unlock your mobile.

There is also no surcharge for paying with your credit card.

Both of these practices which can only be discribed as outrageous and a total rip  off, because you are tied into a contract you have to suck it up. The other issue is that all these large institutes have the same mentality.

 

I have my own business and if I imposed any of these practices on my customers, my customers would go else where.

I would encourage any body  who is unhappy with these practices to vote with their feet too.

 

In addition I have moved my foxtel back top foxtel and managed to negoiate a better deal than the current deal I had with Telstra. (Although I did need to upgrade my Foxel box which did cost me $75)

 

Occasional Contributor
allinone
Posts: 59
Registered: ‎27-09-2011
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Re: Late payment fees

I did not know that Aldi allowed business use of their mobile plans. If you can confirm this I might recommend them to others! I only have a personal phone myself with Telstra prepaid.
Bex
Occasional Visitor
Bex
Posts: 1
Registered: ‎17-06-2013
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Re: Late payment fees

In April I arranged with Telstra to pay my monthly bill manually and the direct debit was deferred for that month. On 22April I received email stating that the direct debit would recommence from 22 May and any invoice due after that date would be debited. I received a bill of $165.01 due 30 May and assumed that in accordance with the email would be paid on due date. A week later I received a late payment notice and I paid the bill immediately. The next bill received today has a $15 late payment fee. I used the online chat to seek a refund and eventually the consultant effected a refund. Thats good, but it took ages, I have always paid bills on time and then Telstra makes an error and I now have a history of non-payment but does Telstra suffer a penalty?  

Occasional Visitor
johnRobin
Posts: 1
Registered: ‎15-01-2014
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Re: Late payment fees

Goodday sir,
i was confused about my bill, i forgot to pay my bill and i'm already overdued for 1day so i decided to pay through paypal., i paid for $95 and now i wonder if there is any charges i should pay
Moderator
Ashley
Posts: 1,076
Registered: ‎07-07-2011
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Re: Late payment fees

Hi johnRobin,

 

You only need to pay the charges that appear on your bill. If any late fee is applicable it will appear on your next bill

Ashley
Moderator
24x7 Digital Customer Care Team
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New Member
Missbehave666
Posts: 1
Registered: ‎18-01-2014
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Re: Late payment fees

Has Telstra actually thought about people like me who are on pensions and can't afford to pay the full amount on or before the due date????? I do my best by taking out a rough estimate of what my combined bill for my home phone, internet and mobile will cost me, but if I only have half the amount on the due date because my pay day falls 2 or 3 days later like in this instance today I get hit with a late payment fee!

 

Also I have two autoimmune disorders and get sick a lot, so when I'm sick for three weeks and bedridden sleeping pretty well all the time, how  am I meant to pay my bill then and is it fair that I get a late payment fee then too????? It seems to me that you get hit with a big amount you have to pay and then get it back from us.... I would love to be in the working world earning money, but it isn't possible with all my health issues so I am stuck trying to live off about $500.00 a week with a child with special needs..... If Telstra gave pension card holders (no matter what sort aged, disability etc) a discount like other big companies do like electricity, gas etc it would be so much easier for people like me who struggle every day to make ends meet.

Moderator
Cas_Telstra
Posts: 485
Registered: ‎22-10-2013
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Re: Late payment fees

Hi Missbehave666

 

I can confirm that late payment fees are not charged according to any individuals personal circumstances, it's an automated process that applies to any account that has an unpaid balance greater than $70 after the Due Date. Of course we understand it's not always easy to pay on time so we offer payment extensions up to 14 days by calling 13 22 00 24x7. Also we send bills out at the same time every month to make it easier to plan ahead. On top of this you do have the option of setting up EasyPay or BPAY where you can make periodical payments if that makes things easier, such as a weekly payment to your bill so when you receive the invoice you've already made payments against it. And finally- there are pension discounts for stand alone landline services, for more information contact us on the number provided :smileyhappy: I hope this helps clear things up.

Cas

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Occasional Visitor
wwuciwuget34
Posts: 1
Registered: ‎18-01-2014
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Re: Late payment fees 2014

  Not Rght

this this needs a  review  again

as it not set up  for those who cant afford the expensive fees

and  have to talk to  to overseas  for admin  and  support.

Telstra in  the year 2000  had  a $5 late fee with over 50%

 not paying there biils  on the due date ...

Things  have only got worse for customers of Telstra

Now its $15.00  for a bill of  $70.00

a Rip Off how ever you look at it

for this who can least afford it...

 

Common Law
Common Law states that late fees cannot be punitive. There is no legal precedent to justify penalizing a person for being late on a payment. Late fees imposed by service providers are unenforceable but most people pay the late fees because it is more convenient to do so than object to paying the fee.Though in the case of a person not paying a debt on time, a business can apply a administration fee but that fee cannot be excessive but must be equivalent to the expense of collecting the unpaid money. It is clear that service providers are using late fees as a way of making money, not just recovering the cost of late payment.

Occasional Visitor
AliciaS
Posts: 1
Registered: ‎23-01-2014
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Re: Late payment fees

Your payment extensions are useless when you request one and STILL get charged a late fee (this happened to me a few months ago). 

Moderator
JesseS
Posts: 838
Registered: ‎20-02-2013
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Re: Late payment fees

Alicia, they are not intended so you avoid late fees as you are still paying after the due date. You are provided 2 weeks to make a payment and you can let us know when you will make the payment, often referred to as an extension, to ensure you do not get suspended or disconnected. It can also enable us to reactivate your service if you are waiting for the payment to land on our end when you report a payment.

Jesse
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Member
Patrees
Posts: 2
Registered: ‎07-02-2014
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Re: Late payment fees

I also have been charged a late payment fee. I asked for an extention as i was in hospital having a breast cancer operation and was granted one, which was then paid by the new date, yet i am still charged a late payment fee. Just spend over half an hour trying to get it sorted out on the 24x7 chat but i gave up, way too stressful for me right now. They just don't care.
Occasional Visitor
ginnic8
Posts: 1
Registered: ‎15-01-2014
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Re: Late payment fees

That's ok. I will just change provider once I am out of this rip off contract. Thank you for nothing

Member
Bradmacoz
Posts: 4
Registered: ‎25-02-2014
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Re: Late payment fees

You might be able to make a payment via your website BUT you can't schedule the payment for a future date...
You want your money on time (fair enough) but I'm NOT going to pay you early unless you pay me $15 for being early!
Established Member
wilk
Posts: 5
Registered: ‎17-12-2013
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Re: Late payment fees

You may be interested to know that Telstra made a $3.9 billion profit last financial year.

New Member
TG_T
Posts: 1
Registered: ‎11-03-2014
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Re: Late payment fees

As a small business owner, I know how annoying late payment can be. I've also just been given a $15 (or 15%) late fee, despite having had a phone and cable broadband bundle for many years now and always paid, mostly on time, and cetainly before the next bill was issued.

 

Ironically, in my business, the worst offenders with late payment (sometimes months) are government and large organisations, though I don't slap a late fee on my invoices as I value their business and know that in the long run I will be paid. Direct debit is fine, but sometimes I also need the flexibilty while waiting for money to arrive from others.

 

I found out this morning that I have no obligations to Telstra any more, so will be looking into other options for internet and telephone, and certainly won't be recommending the service to others. 

New Member
POM68
Posts: 1
Registered: ‎12-03-2014
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Re: Late payment fees

Hi all, I have been a telstra customer for over 20 years, I can never recall having a late fee before. My bill was due 28 Feb and I did forget to pay by that date, I payed in full on 5 Mar and got a $15 late fee, how can that be justified. 5 days late with a payment and charged $15, thats $3 a day. I will pay as I know its a waste of time trying to get it reversed. When I last moved house it took Telstra nearly 3 weeks to give me the same service that I had at my previous address, did I charge Telstra for not providing a service, of course not. I will be changing providers as soon as my contract expires. Telstra you have lost another customer. Thanks for nothing

Visitor
symo1962
Posts: 1
Registered: ‎11-12-2013
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Re: Late payment fees

Thats funny - $70 - given you try and push the single bill aspect which of course takes any bill over that amount.  Better for me to split the bills back up and put the onus back on each user to pay and end up under $70 - which of course then means Telstra have to work with multiple statements.

Member
Phil68
Posts: 2
Registered: ‎03-04-2014
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Re: Late payment fees

Of course $15 late fee is punitive and illegal according to ruling from civil action against banks. For some of us the reason we late is not the fact we forget but we simply don't have the money (4 years since serious back injury and still waiting on legal system and trust me I wont be getting late payment fees for slow insurance), to punish the less fortunate is just pathetic and hardly justified in any way. I sorry I can't prioritise my phone and internet in bills but my medical costs, medication, rent, power and food have to come first. I always ask for extension on automatic system so not even have extra cost of reminder sent. There is no way that it costs them $15 since no actual work created and they arent losing 10% interest on that money in short time it takes. There is no way this is not a punishment for being late ie punitive and illeagal.

The lawyers are already talking about starting same action on other companies including Telstra and I for one will be keeping eye out to add my name to list of plaintiffs. 

Member
Phil68
Posts: 2
Registered: ‎03-04-2014
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Re: Late payment fees

And of all the Telstra replies listed not a single one addresses fact that it is illegal and recently confirmed in court by precedent to be illegal. They just keep harping on about systems of paying assuming everyone has these resources and not giving a damn about kicking those of us who are down.

New Member
TheG
Posts: 1
Registered: ‎28-05-2014
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Re: Late payment fees

[ Edited ]
That is wonderful that you are showing people how to avoid late payment fees, but you do understand that you have failed to disclose when signing up for the contract that is if your late you will be charged a late payment fee, this is highly illegal as you failed to disclose this on signing.
Unfortunately you can not charge someone $15 if you do not tell before they sign up this is called obtaining money by dissipation. I understand that you have it on the bill but you have not disclosed it. So everyone who's late but has always payed there bill on time and has only been late ones or twice should ring up to get the $15 removed, oh and if you get charge for using 13 or 1300 number ask for a refund on that too as if they never charged you $15 you would never have called the 13 or 1300. Remember is illegal to charge someone more without disclosing it first.
Have a lovely day.
Established Member
Steve153
Posts: 6
Registered: ‎13-06-2014
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Re: Late payment fees

For me the most annoying thing in this was that Telstra actually had my cc details - they took it when I bought the phone + plan.  Yet they chose to send me bill & late payment notice.  FFS save the paper, and just charge the card you already have on file!!!  Yes I was busy, yes I had a bit too much life happening to worry about a stupid bill - which I assumed will be taken off the card automatically.

 

Slapping ~20% late fee on it is exorbitant & disgusting practice.  

 

I just hope they have to spend it on medication...

New Member
Nevan
Posts: 1
Registered: ‎01-08-2014
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Re: Late payment fees

FACT: Only the Government through an Act of Parliament can charge a PENALTY.

 

This Late Fee is a PENALTY and as such is illegal.

 

It doesnt matter what you sign, if it is illegal, then it is illegal. This is a basic premis of the law.

 

This is why the Banks have been in the manure.

 

The pity is that there is nothing to stop people/companies trying to induce you to pay a fee, and thats why we receive invoices in the mail from companies that generate them randomly and live off community ignorance.

 

Of course if you took Telstra on, they would chastise you and say "well, we'll refund it THIS time - but dont do it again!" and you get your money back and Telstra gets to keep duping the rest of their clients.

 

No doubt the Management wont have the courage to respond to this - thats how bullies are.

 

.... Nev

Community Leader
Kalak
Posts: 2,325
Registered: ‎30-06-2011
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Re: Late payment fees

Hi Nev,

You are correct in that generally speaking a business can't levy a penalty/fine on a customer.

They CAN however, charge the customer a fee that is in line with reasonable costs. The banks got in trouble because their costs were so small compared to their fees.

In this case Telstra's fee is reasonably applied, and at a level that I'm sure would not even cover the costs of running debt management teams/processes within the business.

Because it's a 'cost recovery' based fee, it's entirely LEGAL.

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If you've found a then don't forget to mark that post accordingly.
If you think I've been of assistance please remember to click on the
Please note: I am an accredited Telstra Hero and I assist Telstra on social media platforms, however I am not a Telstra employee and any posts or opinions are entirely my own and don't reflect any official company position.
Occasional Visitor
iskovk
Posts: 1
Registered: ‎08-08-2014
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Re: Late payment fees

Somehow telstra moved me to paperless billing!  I was waiting for the mail!    Paid the overdue amount under $80 a couple of weeks late.  Fine $15!

 

I have now paid the next bill ahead of time by one week, and included extra payment of the previously outstanding amount.  Lets see if the accounts dept can do math!

 

Telstra is now holding a couple of hundred dollars of mine in credit.

 

I hereby strike a rate of $10/wk, and invoice Telstra corp $20 for the privilege of using my money.   Gert, you may credit my account at your convenience!

 

 

iskovk

Occasional Visitor
Ziggy1
Posts: 1
Registered: ‎20-05-2014
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Re: Late payment fees

That was when it was all paperbills being posted out to clients/customers. Now it is all electronic your statement does not ring true. Same goes for banks who are now at threat of legal action due to high/excessive late payment charges. Maybe we should look at Telco's next in line for action?


Kalak wrote:

Every bill includes a reminder on the front page.

 

http://i43.tinypic.com/6rli81.jpg

 

Back in 2000 when Telstra introduced a late payment fee (then at $5) it was estimated to cost them in the area of $180 million a year, or around $36 per late paid bill.  This includes costs such as their inability to utilise those funds, potential lost interest, the cost of running credit management teams etc. 

 

So even if we use a figure that is 12 years old now, the late payment fee is still less than half the 'cost' of you paying your bill late.

 

As suggested you can use online services to set up bill reminders, and there is always direct debit.  The bill is issued a few weeks before the debit is due, giving you plenty of time to query anything that you don't understand/agree with before the money comes out.


 

Occasional Contributor
AusRM
Posts: 20
Registered: ‎27-04-2012
0 Kudos

Re: Late payment fees

Class action going ahead by the look of it.

http://acalawyers.com.au/class-actions/
Occasional Visitor
jon7272
Posts: 1
Registered: ‎23-04-2014
0 Kudos

Re: Late payment fees

direct debit sounds good untill the take to much out wit an incorrect billing error try getting a refund they just tell you we will credit you for next bill that sux when you are on a fixed income

Moderator
Patrice
Posts: 648
Registered: ‎21-02-2014
0 Kudos

Re: Late payment fees

Hi Jon7272,

 

If there has been an issue with an invoice and an adjustment has been made we are able to suspend a direct debit temporarily so you are able to short pay that particular invoice (if we have credited something). 

 

-Patrice

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CVS
Occasional Visitor
CVS
Posts: 2
Registered: ‎01-09-2014
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Re: Late payment fees

I have never had a total Telstra telephone bill above $40 per month as far as I can remember. Except now I have one - $49 because of a late payment fee.

 

$15 on a $34 bill - NOT a penalty???

 

In these days of computer automation(virtually free from human interaction) the claim of just how much it costs Telstra to "manage" a late payment is going to be interesting to explain in a court of law. I would love to see the actual figures and costs breakdowns being produced - especially the actual percentage of customers merely paying late and getting a fee slapped onto their account versus those actually defaulting and ending up with debt collection agencies and/or in court.

 

Frankly, I do not think I will even try too hard and recover this through Telstra - I will get a complaint reference number and join the class action just to see those figures. If I have to pay such a stupidly high fee to sponsor debt management I want to be sure debt management is not a major contributor to the profit bottomline at the expense of little customers like me. And it would be a great vindication if all us little customers get a win for once - even if the lawyers take most of my $15!

 

Sorry, make that "soon-to-be-ex-little-customer" in my case.

Member
Notinformed
Posts: 3
Registered: ‎12-09-2014
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Re: Late payment fees

A late payment fee as stated by law should be a fee that reflects the cost to a company for an amount being overdue. As Telstra does not even send an SMS or email and applies this $15 to any amount overdue you are right in assuming Telstra will also be taken to court.
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TheKelpie
Posts: 2
Registered: ‎13-09-2014
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Re: Late payment fees

I imagine you won't be happy with the messages marked as solutions... I agree with what you say, and object to the inappropriateness of the charge. Telstra applies it ubiquitously, regardless of a customer's history of ontime payments and loyalty, regardless of whether the issued bill is actually correct or incorrect, regardless of whether an adjusted amount was paid as the correct amount and what is deemed late for payment was never actually owing. Certainly poor billing systems with this company, compunded by the outsourcing of their customer "service", who have restricted access to account information. 

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Rodb7
Posts: 1
Registered: ‎19-09-2014
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Re: Late payment fees

Why if I have a direct debit set up have I been charged a late payment fee?
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Steph
Posts: 1,619
Registered: ‎27-12-2011
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Re: Late payment fees

You have to have got your account to a $0 balance prior to starting a Direct Debit. 

Our Direct Debits can't take out any overdue/ outstanding amount on an account, so that amount needs to be paid manually to get the account up to date. 

From there the Direct Debit will take the full amount so there won't be any further issues. 

Steph
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Rusco1962
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Registered: a week ago
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Re: Late payment fees

I agree, they actually do nothing for that $15 as it is charged as soon as it is late.  There has been no reminder sent out or text sent out and it is simply a money grabbing exercise.