Financial counsellor Alan Gray has uncovered hundreds of new cases where Telstra allegedly sold expensive phone plans to Indigenous customers in remote communities, contradicting the company's earlier admissions. Gray, who works with the Bush Money Mob, says he regularly finds victims in communities like Pandanus Park, east of Broome, who were sold multi-device plans they could not afford.
In 2021, Telstra was prosecuted by the Australian Competition and Consumer Commission for unconscionable conduct affecting over 100 Indigenous customers. The company paid a $50 million penalty and agreed to refund customers with interest. However, Gray and other financial counsellors have identified at least 550 new cases in the last two years, resulting in $6.7 million in remediation and compensation.
Nyikina woman Pat Riley is one of those customers. She says Telstra sold her a plan in 2017 with a promise of a free second phone, which turned out to be false. She ended up paying $280 a month and had her credit rating damaged. Over years, she repaid around $30,000 to Telstra. After Gray intervened, Telstra refunded her with interest and paid $10,000 in compensation, but Gray says this is insufficient given the years of harassment and fear she endured.
Telstra's group executive Claire Johnston acknowledged the company has more work to do, stating they have removed direct sales targets and increased community visits. However, critics argue the scale of mis-selling is far greater than initially identified, and many victims remain uncompensated.
