Manitoba Telecom’s move to restrict cash payments angers provincial government

Manitoba Telecom Services Inc concedes that it’s cutting back the number of outlets that accept cash payments for service, but denies it is phasing it out entirely. The provincial government isn’t so sure and wants the CRTC to monitor the situation. "We will have somewhere in Winnipeg and somewhere in Brandon where customers can still go to make an in-person payment without incurring an agency fee," Michelle Picard of MTS assured Network Letter. The matter evolved out of a 1999 ruling by the commission that permitted telcos to combine their wireline and wireless sales operations. Previously, customers would go to one centre to lease a phone, pay phone bills or pick up phone directories. They would then have to go to another store, possibly even located beside the first, to arrange for wireless service. With the change in regulation, MTS decided to eliminate its redundant stores. It combined the MTS Phone Centres with MTS Mobility stores to form a new entity, MTS Connect. The new outlets are dealer-operated, as the Mobility stores were, rather than maintained by the telco itself, as the Phone Centres were. As the telco reviewed its operations, it realized that 90 per cent of its customers were paying their bills through pre-authorized deductions, Internet payment, cheque or other methods. Few were coming in to pay by cash. MTS began phasing out its own Phone Centres as leases expired, which reduced the number of cashiers available to accept cash. There is now only one Phone Centre still operating in Winnipeg.The lack of a cash option has upset Tim Sale, family services and housing minister in the provincial government. He maintains that as a regulated utility, MTS should be operating for the benefit of all people. "All of the people who use MTS’s services include poor people and older people who wish to continue to pay for their telecommunication services in cash," he explained to Network Letter. "So we’ve asked the CRTC to take this into account when they next meet with MTS and have a discussion with them about the appropriateness of them refusing cash payments." Just how appropriate or inappropriate the telco’s actions are is a matter of some dispute. A spokeswoman for the Bank of Canada says that Section 8 of the Currency Act allows vendors to mandate how they wish to be paid. The Manitoba government is being told by its lawyers that legal tender may not be refused. "In fact there’s an interesting case where the refusal to accept legal tender resulted in the waiving of the debt," Sale offers. "In other words someone didn’t want to accept coins or bills for the payment of a debt and the court held that the act of offering to pay in legal tender and being refused constituted forgiveness of the debt." Picard points out the company also has 54 phone corners located throughout the province. These are agents such as insurance brokers who act on behalf of MTS in smaller centres. The agent will have an automated phone terminal that gives access to the phone bill, although not the entire client account. These phone corners are mandated to accept cash payments without a fee. In addition, there are 75 utility agents, such as banks and credit unions, which accept payments for the telco. They charge service fees ranging from 35 cents to one dollar. "We’re looking at where can we have something that will be easily accessible for people," Picard explains, "where they don’t have to incur parking fees and that kind of thing. We agree there needs to be somewhere, because there are still a number of customers who would like that option available to them." Spokespeople for other ILECs across the country told Network Letter that they still accept cash payments and have no plans to alter their procedures.

Manitoba Telecom’s move to restrict cash payments angers provincial government

News | January 15, 2001

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