CRTC issues new home phone disconnection regime

The CRTC implemented a new regime Monday that will govern the way home phone service providers deal with late-paying or non-paying customers, including when they will be allowed to disconnect those customers’ services. The commission adopted new disconnection and deposit rules proposed by an industry working group in July, which brings all home phone services in competitive markets under a single regulatory umbrella for the first time, including those from traditional wireline telcos and cablecos . For the first time, customers of cable home phone services will be protected by rules governing when and how those services can be disconnected, what notice a company must provide before disconnecting them, and what steps they must take to have them reconnected. The new rules also contain caps on the amount of money a home phone company can collect as a deposit. "Too often in the past, Canadians have encountered different policies from companies where their home telephone service is disconnected or they must provide a deposit," Leonard Katz, the CRTC’s vice-chairman of telecommunications, said in a release Monday. "We appreciate the industry's cooperation and support in developing a streamlined code. We believe that self-regulatory initiatives such as this are the preferred option for consumers and the industry." The new rules say companies looking to disconnect the services of late-paying or non-paying customers must first pass a series of tests before cutting off those customers’ home phone lines. Specifically, the commission said that companies could only disconnect customers who owed more than $50 for more than two months; those who failed to maintain a “reasonable deposit or alternative when required to do so;” or those who failed to abide by the terms of a deferred payment plan. Before disconnecting those customers, the service providers must also give them 14 days notice and must outline the reason they are being disconnected, the amount owing, the scheduled disconnection date, any charges related to reconnecting the services, and the telephone number of a company representative who can help to handle any dispute. Providers are also required to inform late-paying customers if they offer deferred payment plans before issuing a disconnection, the guidelines say. In most cases, the companies must also provide another warning to customers no less than 24 hours before their services are to be disconnected. Companies will also only be allowed to disconnect customers between 8 a.m. and 9 p.m. on weekdays, between 9 a.m. and 5 p.m. on weekends, and only before noon on the day before a statutory holiday. If any disconnections occur in error or outside of these guidelines, the company will be required to restore the service during the next working day, and at no cost to the customer. The new guidelines also declare that companies cannot cut off a customer’s home phone service while that customer is disputing the amount owed for that service so long as that customer is paying any other undisputed fees as required, and so long as the company doesn’t have “reasonable grounds for believing that the purpose of the dispute is to evade or delay payment.” They also say companies that accept customer deposits must not collect deposits totalling more than three months' worth of anticipated charges plus the costs of related equipment provided by the company. All of the new rules come into force six months from Monday’s decision, the commission said. John Lawford, counsel with the Public Interest Advocacy Centre (PIAC), said in an interview Monday that the new rules would benefit some consumers but take away some protections from others. “It’s kind of a loss for people who are wireline phone customers like your average Bell or Telus customer but it’s a gain if you’re a Rogers home phone user,” Lawford said. Lawford said he was happy to see the guidelines bring cable companies offering home phone services under the same standards as traditional wireline telcos. At the same time, he noted, the new guidelines remove instructions that say companies must make “repeated” attempts to contact customers before cutting off their home phone services. “We’ve lost some good stuff,” Lawford said of the new rules. A member of the industry working group that drafted the rules, Lawford noted that the near-consensus decision failed to gain PIAC’s support because it does not protect consumers who make partial payments to cover the cost of their phone services but who may not pay in full for other services ordered as a part of a package or bundle. He said this could cause problems for low-income customers who may rely on home phone services for 911 emergency calls. “There will be disconnections of local service that would be dangerous or unjustified.” In its decision Monday, the CRTC said it did not believe rules governing disconnections affecting customers who make partial payments were necessary, but asked the Commissioner for Complaints for Telecommunications Services to monitor consumer complaints arising on the issue and to summarize those complaints in future annual reports. Mark Goldberg, head of telecom consultancy Mark H. Goldberg & Associates Inc., agreed that the telcos should be allowed to cut off customers who have paid enough to cover their home phone services even if they still owe money related to other services like cable TV or cellphones. “If they don’t have the power to disconnect, then there’s really very little in the way of pressure or leverage that the service provider has over a customer that chooses not to pay their bills,” Goldberg said. He added that consumers in competitive markets have always had options to ensure access to emergency phone services, such pre-paid cellphones or services from another home phone provider. “Consumers have choice, and at the end of the day, choice is the best form of consumer protection. It’s the ability to express dissatisfaction by changing service providers.” nkyonka@thewirereport.ca

CRTC issues new home phone disconnection regime

News | November 14, 2011

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