Media - Nick Xenophon - Independent Senator for South Australia

Independent Senator for South Australia Nick Xenophon has welcomed a decision by Telstra to stop charging customers a $2.20 administration fee if they pay their bills by post or over–the-counter.

Telstra Chief Executive David Thodey has announced the charge will be dropped and customers who have already paid the fee will be refunded.

"This was an issue I raised directly with Mr Thodey when I met with him in Canberra recently and I am glad to see common sense has prevailed," Nick said. "Collecting cash payments is a cost of doing business. That cost should not be passed on to customers."

Senator Xenophon will be moving an amendment to the Government’s consumer law legislation, due to be voted on in the Senate later this month, which will made it illegal for other companies to charge similar administration fees when customers pay in cash.

"Optus still charges this fee as do many other companies and it has got to stop," Nick said. "Now that Telstra has done the right thing, it shouldn't be put at a commercial disadvantage because its competitors are continuing to rip customers."

Senator Xenophon said these types of administration fees discriminated against the elderly and those who don't feel comfortable with electronic or phone banking.

"If companies want people to use electronic banking to settle bills they should motivate them with some kind of incentive," Nick said. "They shouldn't penalise people for using Australian legal tender."