Wireless: returns, deposits and low credit score

Buying wireless phones and plans online does get you better deals but you better be qualified.

Qualified simply means, “technically” you are a new customer for that certain wireless carrier and not a current customer who is just renewing/extending the contract; and should have a decent credit score.

If you have a low credit score, no big deal, the wireless carrier will just require a deposit from you which will be returned in about 12 – 13 months in the contract. This will be returned as a credit to your wireless account rather than a check in the mail.

It has been a standard now, that a customer has 30 days to return or exchange the phone for any reason.  The problem with being asked for a deposit, besides actually affording the deposit which can range from $150 – $500, is the return.  Since the deposits go to the wireless carrier, the return policy that takes effect is the policy of the wireless carrier and not the policy of the online store, from which you purchased the phone and the plan.

The online store will accommodate your return, that is not a problem, but the deposit you made which went directly to the wireless carrier may take a while.   This means that if your reason for returning the phone, was to exchange it or switch wireless carriers, you would have to make another deposit.

Those deposits will still come back to you, the only thing is that it will take some time. And in these difficult times, it still feels better to have your money at hand.

Below is a sample of a wireless carrier return policy, which is almost standard across the board.

from AT&T return policy

Service Cancellation
You may cancel service within 30 days from the activation date to avoid the early termination fee of $175. Thereafter the fee will decrease by $5 each month for the term of the agreement. You will be responsible for all applicable usage fees, prorated access charges, taxes, surcharges or other charges through the termination date. AT&T will refund your activation fee, if any, if service is terminated within 3 days of activation.

You may have to return any handsets and accessories purchased with the service before your account will be cancelled. If you are allowed to cancel service within the 30 day return period, but do not return the equipment within the return period, AT&T may charge you an amount equal to or up to the full retail price of the equipment.

If you paid a security deposit, it will take 1 to 2 billing cycles to process the return of the security deposit. The charges for service used on the account before the service termination date will be applied against the security deposit.