Users learn prepaid phone cards don't always deliver the minutes

0 Comments | USA TODAY, April, 2008 | by Emily Bazar

State and federal officials are cracking down on prepaid calling cards that promise more minutes than they deliver to immigrants, soldiers in Iraq and other frustrated phone-card users.

Recent investigations, lawsuits and legislation focus on what officials say are deceptive advertising and unfair business practices by some calling-card companies. They accuse the companies of cheating card buyers of minutes purchased or charging poorly disclosed fees -- such as 99 cents to use a pay phone -- that reduce the balance on the card.

A study last year by the Hispanic Institute, which researches issues important to Hispanics, found that, on average, prepaid calling cards deliver 60% of the minutes they advertise.

The cards are big business. The Federal...