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State officials fight to stop phone-card scams

aellis@dailyegyptian.com

It seems like a good investment.

Pay in advance, and the minutes are there whenever you need them.

But some Illinois consumers would beg to differ after receiving phone cards that did not live up to their promises.

After receiving numerous complaints, legislators put together a bill designed to create rigid rules for phone-card companies and fine stores that agree to sell "dishonest" cards.

The bill, backed by Hispanic legislators, passed the Senate 55-0 last month, and is now in the House.

According to officials, 75 percent of phone cards used in Illinois are purchased by Hispanics.

But Brenda Alvarez, spokeswoman for Lt. Gov. Pat Quinn, who supports the legislation, said this is an issue that affects all consumers, including military families and college students.

"When users of the cards purchase them, they don't get the minutes they're expecting," Alvarez said. "So if they're expecting 60 minutes, they'll get 20 minutes. There are all sorts of hidden fees. There's disconnection fees, cell-phone fees, pay-phone fees, and those aren't listed."

Calling cards have been criticized for their small print and misleading wording. Under this bill, phone-card companies would have to provide a toll-free customer service number that would disclose all fees and the card's balance and expiration date.

But this legislation is not only designed to protect consumers.

It also protects retailers from fines that would be imposed on them for selling "illegal" cards.

Retailers would face a fine of $50 per card or five times greater than the value of the card, whichever is more.

The bill would also require all phone-card companies to obtain certification from the Illinois Commerce Commission.

Phone-card companies such as AT&T, MCI and Sprint have shown their support for the bill, saying it will clear companies who provide quality phone cards from being grouped with those companies that try to scam consumers.

Illinois Attorney General Lisa Madigan's office said it receives at least one complaint per week regarding phone-card scams.

Madigan said she believes the state's growing population has led to more opportunities for fraud.

"My office has found that some of the prepaid calling cards are not worth the plastic they are printed on," Madigan said.

"If E.T. tried to phone home today, he would probably go broke after all the surcharges, fees, fake claims and outright lies associated with some of these cards. If you gamble with playing cards, you know you might lose. But buying a phone card should not be a gamble."