Mark235
Level 1: Cadet

Double Charged

I have just been on the phone with telstra for over an hour first changing my bundle and then discussing the issue of double charging me with billing.

 

As I understand it, when I change my bundle you charge me an additional months charges in advance on top of my normal bill which is chaged in arrears, therefore I pay an extra months charge, which you then hold on to until either I disconnect (which I am sure you will charge me for anyway) or my contract finishes (2 years).

 

This is flat out wrong.  Please explain to me what other business holds on to my money for 2 years, before giving it back to me????  And please don't use the example of paying one month's rent in advance for the purposes of a bond on a rental property as an example, like the lady on the phone did.  Very different situation.

 

My Gas comapny doesn't, my electricity company doesn't, my health insurance doesn't, not even my bank does.

 

Please explain the purposes of this and why Telstra think they should do this and no other company does????

 

If you insist on holding on to my money I therefore want interest, as I have essentially given you a loan for 2 years.  You have provided me no security for this loan, therefore an unsecured loan would attract interest of at least 10%pa.

 

I am interested as to why Telstra feel they are so special...?

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3 REPLIES 3
Level 24: Supreme Being
Level 24: Supreme Being

Re: Double Charged

Charging a month in advance is actually quite common...A lot, if not most, service providers in Australia bill in advance (Optus, Vodafone, Telstra, iiNet/TPG group, Dodo, Foxtel just to name a few that do have advance billing)... 

 

Gas/Electricity don't have a set amount or even a set base amount, so there is no way for them to do it other than to have a random amount in advance at any time... 

 

A lot of insurance companies do it too on monthly payments... if you do a car/home insurance on a monthly payment they will often have a double payment on the first installment too... 

 

Also, at any point in time you are using the month in advance until you next pay your bill meaning that at any point in time you are only really in credit for the remaining part of the month in advance... 

 

That being said, I personally think they over complicate their process and just ask for issues... 

 

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Previously worked with a Telstra Partner however I am not a Telstra Employee, just a fellow customer helping when I can.

Mark235
Level 1: Cadet

Re: Double Charged

But Telstra do not charge in advance, they charge in arrears on any normal month. If all they did was charge in advance I wouldn't care, but they are essentially charging me twice for one month (in advance then in arrears the following month), therefore taking a deposit from me and holding on to it for 2 years. I have foxtel they never double charged me. My home insurance does not. I work with an array of personal insurance companies and they definitely do not. They charge for the month in advance, but not both. If they want to charge in advance then do it. But they decide to charge in arrears, so you can't do both.
I personally don't care about the money, but there will be plenty that do and frankly I don't think it's right.

It would also help if their staff knew what was happening and how to explain it.  They are hopeless.

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Level 24: Supreme Being
Level 24: Supreme Being

Re: Double Charged

The service is only ever a month in advance, they change any extra services in arrear as they can't tell you what you are going to use (if any) above the plan allowance in advance...

As I said, I personally thing that their system is over complicated and just leads to more issues and complaints but you are paying the different of the old month in arrears and then the full month in advance... and on the old plan you would have got the pro-rata refund of the unused portion of the month in advance...

I personally agree though, most of the staff are horrible at explaining the billing system because a lot of them have no real understanding either... I was in a store with a friend the other day and she was having the pro-rata billing explained and it was not right...
Helpful Links

Internet not working or outage in your area? - Check the Outage page for details and troubleshooting.
Help with an account issue? - LiveChat 24x7 support
View Usage, Bills and more - Check it out on MyAccount

Previously worked with a Telstra Partner however I am not a Telstra Employee, just a fellow customer helping when I can.

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