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Deposit Rules
New Applicants
New applicants for telephone service will be required to pay a deposit where the applicant has failed to establish a satisfactory credit history due to any of the following circumstances:
- A deposit will be required when within the 12-months prior to the application, the applicant’s service has been disconnected for failure to pay amounts owed when due.
- A deposit will be required where there is an unpaid, overdue balance owed for previous service.
- A deposit will be required where the previous company has served two or more delinquency notices upon the applicant during the 12-months previous to the application for service.
- A deposit will be required if the applicant has not had prior service with a telephone company in the past 12 months for a period of at least 12 months.
SMTC Customers
Current SMTC customers will be required to pay a deposit should they fail to maintain their good credit history due to any of the following reasons:
- A deposit will be charged when a customer has had their service disconnected for failure to pay amounts when due.
- A deposit will be charged when two or more delinquency notices have been served upon the customer during a 12-month period.
In instances where a deposit will be required, we will follow our tariff on file with the Public Service Commission. According to our tariff, we can charge a deposit of two times average monthly toll from prior telephone service. In the event the customer has had no prior service, we will require a minimum deposit of $70.00. This deposit will be reviewed monthly and adjusted according to actual toll usage. In the event actual toll usage exceeds the deposit on file the customer will be charged an additional deposit.
Interest will be paid on all held deposits at a rate of 12% per year.
Deposits will be refunded when the customer has established good credit history for a consecutive 12-month period. Upon refunding of the deposit, the deposit amount plus any interest earned will be credited to the customers account. In the event service is terminated, the deposit less any outstanding balances will be returned to the customer.
In lieu of a cash deposit, we will accept a written guarantee of a responsible party who has previously established credit with SMTC as surety for a customer account. We will hold this written guarantee until such time as the customer has established credit with us.
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