What happens if you dont pay your phone bill on time

Q: What happens if you dont pay your phone bill on time?

Your mobile provider could cut your phone off so youre unable to make or receive calls. If you dont take steps to deal with the debt, your account will default and the contract will be cancelled. The mobile provider can then take action to recover the outstanding bill, following the normal debt collection process.

This page provides information about the steps you can take if you are struggling to pay your phone or internet bills.

Table of Contents Show

Helping to make mobile phone services competitive for consumers
Billing and financial hardship
ACCC’s work on improving coverage
Reporting a problem about your mobile phone service
Contact your mobile phone provider first
Making a complaint to the Telecommunications Industry Ombudsman
Avoid mobile phone scams
Report a problem about your mobile service provider to the ACCC
What happens if you don't pay your phone bill on time?
How long can your phone bill go unpaid?

There are various laws and guidelines that require telecommunications companies (telcos) to help customers experiencing financial hardship stay connected and manage their phone and internet bills.

So, if you are struggling to pay your bills, you should talk to your telco as soon as possible to discuss your options and take steps to get back on track.

At the bottom of this page, we explain what to do if you have received a disconnection notice or if you have already been disconnected.

If you complete the steps below and your problem still hasn’t been solved, or you are feeling overwhelmed, call us on 1800 007 007 to speak with one of our financial counsellors.

If a product or service you buy fails to meet a consumer guarantee, you have the right to ask for a repair, replacement or refund under the Australian Consumer Law. The remedy you're entitled to will depend on whether the issue is major or minor.

You can seek compensation for damages and loss you suffer due to a problem with a product or service if the supplier could have reasonably foreseen the problem. This is in addition to your repair, replacement or refund rights.

Helping to make mobile phone services competitive for consumers

The ACCC is responsible for the regulation of the telecommunications sector under the Competition and Consumer Act 2010.

The aim of the access provisions in the Act is to ensure that consumers can connect with different networks and benefit from competition in the market.

See Mobile services regulation for more information about our role.

Billing and financial hardship

There is an industry code of conduct that is designed to ensure good service and fair outcomes for consumers of telecommunications services.

The Telecommunications Consumer Protections Code sets out expectations for industry to provide:

clear and accurate information in advertising and contracts about what they are offering in their mobile phone plans
fair billing and credit management processes
effective and clear processes for complaints handling.

If you’re struggling to pay your bill on time due to financial difficulties, you can contact your mobile phone provider and ask about their financial hardship policy, which they are required to have under the code.

The financial hardship policy should provide clear information on the options available to you for managing any financial hardship relating to your mobile phone service.

The Australian Communications and Media Authority has more information to help if you can’t pay your bill.

ACCC’s work on improving coverage

The ACCC held a regional mobile issues forum with several regional, consumer and government stakeholders in 2018. The forum examined several issues, including the lack of accurate and reliable mobile coverage information.

Following the forum, the Australian Mobile Telecommunications Association, Optus, Telstra and Vodafone Hutchison Australia agreed to work together on improving the comparability of their mobile coverage maps. As a start, they’ve agreed to use consistent terminology when describing indoor coverage, outdoor coverage and external antenna. The project is ongoing.

For more information about the ACCC’s work on regional mobile issues see Industry engagement on implementing proposed measures.

Reporting a problem about your mobile phone service

Contact your mobile phone provider first

If you have a problem with any aspect of your mobile phone service, you should contact your mobile phone provider first.

A complaint handling policy can be found on your provider’s website, which will explain how to lodge a complaint. Providers may have a dedicated phone number or email address for contacting them about complaints.

Making a complaint to the Telecommunications Industry Ombudsman

If you cannot resolve a problem with your provider, make a complaint through the Telecommunications Industry Ombudsman website or phone 1800 062 058. The Ombudsman may be able to assist you to resolve your dispute with your provider.

Avoid mobile phone scams

Recognise, avoid and report mobile phone scams by visiting the Scamwatch website.

Report a problem about your mobile service provider to the ACCC

You can also report a problem about your mobile service provider to the ACCC. We may investigate providers that repeatedly break the rules.

Most service providers have a specialist hardship team to help if you are having difficulty paying your phone bill.

If you can, start paying the amount you can afford and get in touch with your creditor straight away to put a repayment agreement in place.

Contacting your provider:

Ask to speak with their hardship team, and ask what they can do to help. This can include:

Changing your billing from monthly to fortnightly
Offering an instalment payment plan for outstanding bills
Allowing a delay on a payment
Restricting your access to more costly services (access to emergency services and the service provider’s enquiry line can’t be restricted)
Downgrading to a more affordable plan. Ask for the downgrade fee to be waived
Returning your mobile phone in order for you to be released from the contract (there may be a termination fee)
Switching to a pre-paid mobile phone.

If you can’t come to an agreement that you think is fair, you have a right to seek ‘external dispute resolution’.

This free and independent service gives you an opportunity to explain how, by working with your provider, you can get back on track with payments.

Will I be disconnected?

Your home phone service provider can only disconnect you after they have:

Advised you that they may disconnect your service if you don’t pay
Discussed your repayment options with you, and directed you to the services of financial counsellors and consumer advocates for managing debt
Given you at least seven days’ notice of their intention to disconnect your service
Advised you in writing that they plan to disconnect your service
Informed you of the earliest date that disconnection will occur.

If you feel your provider has been unfair, or hasn’t fulfilled their disconnection requirements, you have a right to take your complaint to external dispute resolution by contacting the Telecommunications Industry Ombudsman.

What happens if you don't pay your phone bill on time?

Your mobile provider could cut your phone off so you're unable to make or receive calls. If you don't take steps to deal with the debt, your account will default and the contract will be cancelled. The mobile provider can then take action to recover the outstanding bill, following the normal debt collection process.

How long can your phone bill go unpaid?

Cell phone debt has a federal statute of limitations of two years. After the statute of limitations has expired on a debt, it is considered “time-barred.” Debt collectors might still try to collect payment on this debt, no matter how old it is.