He's just released an annual report that shows contract disputes are rising.

"We see plenty of complaints in which customers tell us that their provider insists that the relationship is governed by a contract, which is contrary to the customer's understanding," he says.

As Commissioner for Complaints for Telecommunications Services, he and his staff dealt with 3,214 complaints last year. While billing issues were the major irritant, contract disputes came second – figuring into 27.4 per cent of the complaints. Agreements for telecom services are often entered into online or by phone, Maker says. There can be a lack of clarity in the nature of the agreement.

Can't he work with the companies to better protect customers bound by unwritten contracts?

Unfortunately, he doesn't feel he has the power to do so.

"I agree with you that formally documenting any contractual agreement makes good sense, but it is not required by law or otherwise," he replied.

"CCTS's role as an `ombudservice' is not to make the rules, but to see that customers are treated properly within the confines of the rules that do exist, the contractual terms or otherwise."

Daryl Charanduk, a certified financial planner, switched his business phone lines from Bell Canada to Allstream last February to get a significant monthly saving. In April, Bell charged him $700 for early termination of a contract. He called and said he was unaware of a contract.

Bell sent another request for payment in May. This time, it said he had been underbilled, since he was receiving the contract rate.

"The money owed is over $500," he says.

"Bell offered me a reduction of half the charge in September, but I felt in principle that I really should not pay anything.

``I still have a phone line with Bell, as I have a contract for my Internet. I did not move that line. I knew I had a contract. I have found this experience to be frustrating and aggravating, since I have been with Bell as a business customer going back to 1995."

The CCTS deals with complaints by residential customers and small businesses (defined as those whose most recent monthly bill for telecom services from the provider is $2,500 or less).

"I was unaware of the CCTS ombudservice or even where to look for it," says Charanduk, who submitted his complaint at the website, www.ccts-cprst.ca.

Consumers used to send complaints to the Canadian Radio-television and Telecommunications Commission. But its powers have shrunk with the trend to deregulation in recent years.

The CRTC recommended the establishment of an industry-funded organization with the authority to handle complaints about deregulated telecom services.

The CCTS now has 38 industry members, up from 16 in its first year. It provides written recommendations on how to resolve complaints – though members don't always follow its advice.

It can recommend payments to customers as compensation for loss, damage or inconvenience, up to a maximum of $5,000.

Of the 3,214 complaints resolved by the CCTS last year, Bell accounted for 1,239, Rogers Communications 672, Telus Communications 579 and Primus 393.

When talking about verbal contracts, the CCTS shifts the responsibility to customers to ask telecom providers about terms of service.

"We do not address the legality, fairness or validity of any particular contract or service term," its annual report explains.

However, it wants telecom providers to make the terms of service more visible and accessible to customers at the decision-making stage – even though this can be challenging.

"We encourage the industry to use its creativity to develop means by which key information can be provided to customers either prior to subscribing, or in writing thereafter with a right of cancellation until that information has been provided," it says.

This is one recommendation I hope the industry will follow. And if not, it's time for the federal government to make it mandatory.

source: www.thestar.com