ACMA warning to Lycamobile after 12,596 customers were overcharged

The Australian Communications and Media Authority has given low-cost mobile provider Lycamobile a formal warning after problems with its billing system caused it to overcharge 12,596 customers.

Between January 2011 and October 2013, an error meant the company’s billing system did not always recognise the difference between mobile phone numbers and landline numbers beginning with the number ‘4’.

As a result, according to ACMA’s investigation, 12,596 customers were overcharged a total of $13,387.

The carrier has since implemented changes in its billing system to fix the problems, and has developed a plan to refund affected customers.

The company is the fourth carrier found to be in breach of the Telecommunications Consumer Protections Code since the code came into force in September 2012.

In each case, the carrier involved opted to report itself to ACMA.

ACMA chairman Chris Chapman said accurate billing was essential to the efficacy of the TCP Code at one end of the continuum and smart customer care at the other.

“In this case, we acknowledge that Lycamobile acted quickly and proactively to compensate affected customers,” Chapman said in a statement.