WHAT TO DO IF YOU CAN’T
PAY YOUR BILL
If you cannot
pay a bill on time the worst thing you can do is ignore it – it
won’t go away. Don’t let a problem get out of control. If you are
having trouble paying a bill or the bill is more than you expect, contact your
service provider immediately. They are obligated to:
- have a financial hardship policy to assist you, available on request
- have credit control tools in place and available for you to use
to manage your spending
- provide you with access to current information on the unbilled
amounts on your account
- follow credit management processes before default listing a customer
as a bad debtor.
The best way to avoid trouble is to understand the contract, watch your usage
and pay the right amount when it is due.
AN UNPAID BILL CAN PREVENT YOUR FUTURE CAR OR HOME LOAN
Whenever
you apply for a loan, credit card or any service which you use before you pay,
including a phone or internet service, the provider of the service– whether
a bank or telecommunications company – needs to consider how likely
it is that you can pay back the amount you borrow.
Your credit rating is built on your record of paying the bill or the loan instalment
on time as you agreed to do when you signed the contract or started using the
service. To protect their money, most companies which provide credit for services
or loans will record their dealings with you. When you pay the agreed amount
on time, you build a good credit rating which will make it easier for you to
borrow next time.
If you are late with payments or don’t pay the right amount, you’ll
be recorded as a bad debtor. Lenders or service providers look at a persons’ credit
payment history, current debts, the length of credit history, credit type mix,
and frequency of applications for new credit. If you have failed to pay a bill
on time, have a bad history paying bills or loans, businesses will be less
likely to want you as a customer.
Once you have a bad rating, it is hard to clear, even if you have paid the
original bill and haven’t had a problem since. One mistake can affect
your whole financial future – it may haunt you, for instance, when you
want to rent a property, borrow money or get a mortgage to buy your own home.
WHERE TO GO FOR HELP
If you are unhappy for any reason with
the service you are receiving, you need to make a complaint to the company
that provides the service first. You can always contact the company by telephone
or in person, but it is best to write to your service provider to record your
complaint and their response. If you don’t receive a reply or you’re
not satisfied with the response you receive, you can make a complaint to the
Telecommunications Industry Ombudsman (TIO) (go to
www.fairtel.org.au/complain.asp
for contact details).
If you believe that you were mislead, pressured or subject to other unfair
sales tactics that breach consumer protection laws, you may also complain to
the ACCC or your local Fair Trading or Consumer Affairs office (go to
www.fairtel.org.au/complain.asp
for contact details).
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