Firm Files Class Action Against 8 Calling Card Companies
The Prepaid Calling Card business has expanded over the past decade to a $4 billion industry. The market, however, has been plagued by fraudulent and deceptive practices that allow providers to give consumers fewer minutes than they pay for and to tack on hidden and unfair "junk fees." To induce consumers to purchase their calling cards, Prepaid Calling Card providers advertise a specific number of calling minutes for a particular monetary value stated on the calling card, either through posters, media, and/or voice prompts. In reality, however, consumers receive only a fraction of the calling time that they reasonably expect for the calling cards they purchased.
An independent market investigation has confirmed these fraudulent and deceptive practices. To stop these unfair practices, LTL, together with co-counsel, recently filed 8 class actions in California, seeking to certify nationwide classes against certain leading Prepaid Calling Card providers.
