Where customers are in debt to Eircom due to non-payment of their phone call bills, Eircom has a policy for debt recovery. This can culminate in disconnection of the telephone line in persistent bad debt cases. Customers then have to pay a fee to get reconnected.
In the past, this policy applied equally to social welfare customers in receipt of the telephone allowance, even though my Department was continuing to meet the standing charge element of client bills in these cases through the telephone allowance. Following discussions initiated by my Department, Eircom has agreed to revise its debt management policy regarding defaulting customers who are in receipt of the telephone allowance.
From August 2003, Eircom implemented a new debtor policy on a pilot basis for customers in receipt of the telephone allowance. Since then, any such customers are no longer disconnected but have their outward phone service barred. This restriction, known as outward service barred or OSB, means that they can still receive calls and can make emergency calls but cannot make other outward calls. In this way, customers do not add to the debt already owed to Eircom. This procedure can be invoked by Eircom where the balance on a customer's two monthly bill is over a specified amount.
Eircom has stated to my Department that if this change in policy resulted in a substantial increase in the total amount of arrears outstanding from this particular group of clients, it would consider introducing a limit on the amount of time a customer could remain on outward service barred. Following a recent review of its policy, Eircom has identified that debt levels were increasing for some defaulting telephone allowance recipients. Accordingly, Eircom has informed my Department that it intends to limit the duration that customers can remain on outward service barred to four months. This is in cases where customers refuse to make any repayment towards their outstanding liabilities. As far as my Department is aware, this revised procedure has not yet been implemented by Eircom. Ultimately, the customer debt management policies of Eircom are a commercial matter for that company to determine.
Where people are having difficulty in meeting their liabilities, they can receive free advice on managing their financial affairs and help in dealing with creditors from the monetary advice and budgeting service, MABS, which is operated by my Department. I strongly urge anyone facing this situation to contact their nearest MABS adviser.