Feedback and Regulation on "Pay Later" Contracts of Telecommunications Companies

12 Dr Tan Wu Meng asked the Minister for Digital Development and Information (a) whether the Government regulates telecommunications companies' (telcos) transactions of "pay later" contracts with retail customers; (b) whether any feedback has been received regarding telcos immediately imposing heavy penalties when a customer defaults on a payment without notification; and (c) if so, how many cases of such feedback have been received since 2023.

Mrs Josephine Teo: Buy-now-pay-later plans are offered by telecommunication companies (telcos) to consumers wishing to pay for mobile devices in instalments. Such plans are common for many other sectors and retail merchants. To safeguard consumer interest, the Infocomm Media Development Authority (IMDA) requires telcos to ensure that consumers acknowledge the terms and conditions, instalment charges, billing arrangements and penalties prior to consumers entering into purchase/service agreements.

Over the last two years, IMDA received 14 feedback from members of the public on such instalment schemes. To date, telcos have assisted customers in resolving their issues for all cases.