A warning shot has been fired across the bows of Telstra for failing to co-operate with the industry watchdog over debt collection.
The Telecommunications Industry Ombudsman (TIO) has given Telstra four days to respond to concerns over its credit management practices or face a public roasting. The TIO told Telstra of its concerns three weeks ago amid a flurry of complaints. Credit related complaints to the ombudsman nearly doubled in the March quarter, after Telstra's sale of $300 million worth of bad debt to collection company Alliance Factoring last year.
Alliance has since been chastised for its collection methods. Telstra was asked to respond in writing to issues raised by the TIO in the June meeting before the ombudsman spoke publicly about his concerns, but has failed to comply.
