FCC warns consumers about prepaid calling cards

Consumer Reports News: May 09, 2012 04:08 PM

The Federal Communications Commission has issued an enforcement advisory on prepaid phone cards, following the latest study from Consumer Reports on the problems they pose for vulnerable, low-income communities.

The agency's advisory alerts prepaid calling card consumers to the dangers of undisclosed rates and hidden fees, and warns carriers that the FCC will diligently pursue companies who make false or deceptive claims about their phone services.

The FCC last fall took aggressive actions against some prepaid calling card companies, proposing $25 million in penalties.

At a press conference this week discussing the results of our study, officials from the Federal Trade Commission and the New York State Attorney General's office said they are also working to pursue violators, and are coordinating actions with the FCC.

The Consumer Reports study found the rates were usually not disclosed at point of sale or on the card, and numerous fees were listed on the back. Many had weekly maintenance fees, and fees for calls to cell phones. Many also said rates and fees were subject to change without notice.

We also provided buying advice in eight languages for consumers.

Source:
Buyers Beware: Carefully Review Calling Card Advertisements Prior to Purchase [FCC]

—Consumer Reports