Telecommunications Credit Assessments

Robust and comprehensive assessments of a consumer’s capacity to pay (credit assessments) help ensure consumers can confidently participate in markets and access products and services they can afford. The obligations in the Telecommunications Consumer Protection (TCP) Code for carriage service providers (CSPs) to conduct credit assessments are ineffective and do not provide appropriate community safeguards to communications consumers. Credit assessment obligations must be sufficiently robust to protect consumers against financial harm, while ensuring that financially capable consumers are not prevented from acquiring a service.

ACCAN recommends that the Minister for Communications direct the Australian Communications and Media Authority (ACMA) to implement direct regulation for telecommunications credit assessments. Direct regulation of credit assessment protections will reduce consumer harms caused by irresponsible sales practices that result in financial over-commitment.