Telstra battles over 1 cent

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As the budget is handed down and we brace for massive debt, try to imagine how anyone at the moment could squabble over 1c.

Today Tonight found one family who'd been hounded by Telstra for owing 1c on their phone bill.

Not only were they threatened with court action but also a bad credit rating.

Eddy Chmaisse's 46-year-old mum Houda can speak little English and she has been paying bills all her life.

Like many families, this mother-of-six found rising phone bills were becoming too much with her teenagers spending hours calling their friends' mobiles.

"Number one, we're going to incur more fees and number two, [Telstra] wants to take us to court and put it on mum's credit rating," Eddy said.

Houda said she requested that Telstra blocks mobile phone calls from the home phone.

That did not happen and a bill for $185.14 arrived.

"She thought maybe it was a mistake," Eddy said.

Telstra acknowledged it was a mistake and promised to cover the charges. It then gave credit for $185.13.

The credit was 1c short.

"I can't believe this letter," Houda said.

"To get a bill for 1c is a bit insulting," Eddy said.

"They're the ones who refunded the money short."

Telstra began sending letters chasing the debt. One letter after another was delivered until finally Specialised Recoveries was called in.

"It's not about the money it's just the principle," Eddy said.

"I mean they're sending these letters, it's costing them more to send the letter rather than saying let's not worry about the 1c,"

The family called Telstra to resolve the problem and was told it would fix the problem and send a letter of confirmation.

The only letter they received was from a debt collection agency.

In the past year the number of complaints about bad customer service from telecommunication companies has risen 61 per cent, an additional 200,000 thousand complaints a year.

The Consumer Action Law Centre's Sean Carroll said the government needs to take action.

"A mistake was made, all they had to do was fix the mistake it seems they have made it worse," he said.

"The government should really step in and legislate and regulate it so we don't have situations where debt collectors are chasing 1c for a debt that was supposed to be waived in the first place."

Eddy said the family wanted to disconnect but Telstra is the only one who services the area.

Today Tonight contacted Telstra for a response and after 24 hours they replied. Telstra said the problem was the result of a "processing error" and agreed for the "outstanding amount" to be cancelled.