A Telstra customer attempting to port his phone number to an alternative provider was told he could not do so until an outstanding amount of $170,000 is paid.
Murray Clode signed up with Telstra for a home broadband package ahead of moving into a new property in Queensland's Currumbin.
However, after learning that he would not be able to have internet speeds sufficient for his home business, he elected to switch providers, including for his mobile phone.
"I tried to port my Telstra phone number over to Vodafone, but I was advised the number could not be processed due to the existence of a bad credit rating and number block against me, by Telstra," Mr Clode said.
"At this point I contacted Telstra whereby I was informed of the $170,000 outstanding debt."
Mr Clode, who lives in Queensland's Currumbin, said he was "absolutely speechless" when he was informed of the amount last week.
"There was no explanation. All my bills in my online account were up to date and I have never been contacted by Telstra or the credit reporting agency. The first I heard of it was on the online live chat with Telstra."
In a transcript of his online conversation seen by Fairfax Media, a Telstra representative said "upon checking the notation…it shows the reason why we are unable to transfer your number as you do have an owing amount of $170,000."
The Telstra representative said he understood the owing amount "might sound quite unbelievable," before suggesting the matter be further investigated by the collections and credit management team.
However Mr Clode said he was still yet to be contacted by Telstra about the alleged debt.
"The existence of this false default listing is potentially very damaging to me...I have never been contacted by anyone regarding an outstanding debt, and I can evidence that all my accounts with Telstra have been paid prior to their due dates," said Mr Clode, who is concerned he will be unable to apply for a new rental property while the debt listing remains.
"I was thinking about moving up to Airlie Beach to buy a unit, but I've got no chance. At this point I'd be lucky to get a bus card."
A spokesman for Telstra told Fairfax Media "initial investigations have not been able to identify any outstanding debt, and we are looking further into what has occurred."
"We will talk with Mr Clode to resolve the issue with him," he said.
News of the apparent $170,000 debt followed four months from July, in which Mr Clode experienced difficulty in obtaining an internet connection sufficient for his home business, as a sole stock market trader.
He said despite being told prior to moving to Currumbin that there would be no issues, he later learned that the infrastructure was never going to be sufficient, as the property was positioned at the outer limit of the ADSL exchange range.
"I've had to pay to break my lease early, because I can't stay and make a living here without sufficient internet."
Mr Clode has already lodged a complaint with the Telecommunications Industry Ombudsman about the service issues, and said he never would have signed a lease at the property if he had been informed that the infrastructure would present difficulties.
