Michigan Bell Ordered To Refund Deposits

The Michigan Public Service Commission has ordered the Michigan Bell Telephone Company to refund over $5 million in residential customer deposits during the next few months as one of a series of sweeping measures which provide consumers with a "phone users' bill of rights."

Other changes required by the Commission's action include the establishment of complaint procedures, a guarantee of hearings where customers can challenge phone company decisions to cut off service, and the elimination of all late-payment charges as well as discounts for early payment of phone bills.

Customers will have 21 days to pay their bills under the new rules, which also provide for delays in the termination of service when customers are faced with financial or medical emergencies.

More good news for phone users includes a ban on deposits for all customers except those who have left unpaid phone bills. Beginning Friday, October 1st only those customers who have maintained an unpaid balance with Bell from previous phone service will be required to make a deposit (average: $55) before receiving telephone service.

The giant telephone company told reporters that some 80% of its approximately 118,000 current residence customers will receive their deposits back in the next few months.

The bill of rights for phone users will become law within 120 days after the Joint Administrative Rules Committee of the Michigan Legislature approves the Public Service Commission's recommendations

Bell claims that it will begin making the refunds even before formal approval is granted.