After reading the "wireless terms and conditions of service" under "G21 Deposits I discovered a very ambiguous statement and I quote "MTS reviews customer security deposits every six months. MTS will return a security deposit when each of the three..." no where does it state in what form the security deposit will be returned.
if I am reading it correctly MTS will return the security deposit in full after six months if you are a good customer. This is where I am confused if it is returned as a credit to my account it will take months for all the money to be returned.
They can hold it for 6 months, and release it assuming there are no issues with the account. If there are, they can apply whatever you have on the deposit balance against whatever is outstanding.
I suggest you read over the Deposit portion of this site:
The CRTC released rules for carriers, and Deposits fall under them.
If there are no issues at the end of the six month period then the funds should be released back to you.
MTS thinks they can get away with dumping it in your account (technically the funds are not released to you). The deposit needs to be returned within 30 days of the end of the holding period.
I had 4 discussions with MTS before the money was released (I also filed a complaint with the CRTC). At first they only released 75$, applied the rest to my account. Took almost two months to get the funds.
See Section H under the above link. I also noticed MTS doesn't do this either:
A service provider must calculate interest on security deposits using the Bank of Canada’s overnight rate in effect at the time, plus at minimum one percent, on the basis of the actual number of days in a year, accruing on a monthly basis.
Hopefully you are more successful then I at getting your money back in a more timely fashion. The CRTC has an online form you can fill out to file a complaint if you have to.
Also, of the 4 people I spoke to at MTS regarding it they each gave me a different answer when asked about it.
When it comes to holding security deposits, certain criteria needs to be met in order for them to be released. The deposit itself has to be held for a minimum of 179 days and the account must be paid in full and on time based on the due dates in accordance with your billing cycle. In addition there can't be any active payment arrangements for outstanding bills on your account at the time of it's request of its return.
The return of the deposits, is automated by the system and so by nature it will apply it as a credit to the account as a first course of action. If there is any credit balance after the deposit is applied at that point you can certainly request it as a refund cheque.
Hope that helps clear things up.
Just wanted to further clarify, the Wireless Code of Conduct states that the need for a deposit needs to only be reviewed yearly.
I have included the section on security deposits below as a reference. This is the minimum that MTS must do however they can give terms that are more customer friendly such as a shorter review cycle of the need for a deposit.
H. Security deposits1. Requesting, reviewing, and returning a security deposit
- If a service provider requires a security deposit from a customer, the service provider must
- inform the customer of the reasons for requesting the deposit;
- keep a record of those reasons for as long as the service provider holds the deposit;
- specify in the written contract the conditions for the return of the security deposit;
- review the continued appropriateness of retaining the deposit at least once per year; and
- return the security deposit with interest to the customer, retaining only any amount owed by the customer, no more than 30 calendar days after
- the contract is terminated by either the customer or the service provider; or
- the service provider determines that the conditions for the return of the security deposit have been met.
- A service provider must calculate interest on security deposits using the Bank of Canada’s overnight rate in effect at the time, plus at minimum one percent, on the basis of the actual number of days in a year, accruing on a monthly basis.
- A service provider may apply the security deposit toward any amount past due and may require customers to replenish the security deposit after such use in order to continue providing service.
I appreciate you taking the time to let us know your thoughts on the matter and as processes are constantly being re-evaluated to make the experience the best it can be for our customers. I'll send your thoughts on how the credit deposit process works so that they can get thrown into the mix if and when the process changes.