Bill stressed copping fees

THOUSANDS of cashstrapped Australians are being whacked by fees for financial help they can get for free.

Consumer advocates have voiced their outrage over a new payments provider, dubbed Defer It, which enables desperate customers to have their bills paid for upfront by the firm with charges added on.

Customers are using the service to have their utilities, including gas, electricity and water, paid or even traffic fines.

The total bill amount then needs to be repaid in three instalments with an additional $5 monthly fee.

It allows the customer to defer paying the bill and instead have it paid by the company.

One financial advocate described it as the “Afterpay of bill payments.”

The Consumer Law Action Centre’s spokesman Jake Lilley said it was a real concern given customers can receive free payment extensions on many bills.

“Utility providers already offer to defer bills for their customers free of charge and are also required to assist people who have difficulty making payments,” he said.

“It is worrying that the Defer It service may encourage people to not inform their energy company of payment difficulty.”

Financial Couselling Australia’s executive director Fiona Guthrie also attacked the services preying on people struggling with their finances.

“This will be a product that is used by people who are definitely experiencing financial hardship,” she said.

But Defer It chief executive officer Jonty Hirsowitz said very few customers fail to repay their bills using the service.

“The majority of our customers come back after using us for their first bill and will start deferring a few of their other bills,” he said.

“We encourage our customers to seek an extension from their bill provider if they are able to.”

He said many customers have been hit with high late fees by their provider and that is why they are seeking their service for help.

“Utility providers already offer to defer bills for their customers free of charge and are also required to assist people who have difficulty making payments.” THE CONSUMER LAW ACTION CENTRE’S SPOKESMAN JAKE LILLEY