Tens of thousands of Telstra customers could be compensated for late payment fees after a Sydney law firm announced plans to launch a class action before Christmas.
ACA Lawyers will argue the fees are unlawful because they do not reflect the actual costs incurred by the telco.
It comes after a February Federal Court ruling that held ANZ Bank's $20-35 fees on late credit card payments were "unconscionable", being far in excess of the true cost to the bank of no more than $5.50.
The same principle applies to Telstra's late fees, which include a $15 charge on overdue balances exceeding $70, said Steven Lewis from ACA Lawyers.
"It's hard to see how Telstra could justify a 20 per cent impost as being a genuine pre-estimate of their costs," Mr Lewis said.
He estimated based on Telstra's financial results that the telco has collected hundreds of millions of dollars in late fees over the past five years.
A Telstra spokesman said the company's late fees were reasonable in light of the costs incurred.
"We will strongly defend any claim we receive," he said.
Gina Wells from Brisbane said she has been a Telstra customer for "years" and is frustrated by late fee charges.
"Obviously [I feel] angry," she told SBS.
She’s among those considering joining the class action.
"They get away with it, same with the banks, so if everyone’s going to do it, I’ll join."
Telstra customers are will need to register their interest in the class action, which Mr Lewis said would be filed in the Federal Court by Christmas with funding from a UK litigation firm.
He said ACA Lawyers would look to launch similar actions against Optus and Vodafone over their late fees in future.
Optus said via a representative that it would assess claims when they are made.
"Optus believes that its late payment arrangements for customers are fair and well based," the representative said.
What do you think of the planned class action being brought against the telco over late fees? Comment below or tweet @sbsnews
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