PhoneCardSmile.Com Logo
E-mail: Password:
Welcome to
Calling Card News, Telecom News
NJ calling-card firm reaches settlement with Florida over deceptive ads

Date: 1/7/2009 11:01:43 AM

A major prepaid calling-card company that engaged in deceptive practices in Florida will dial up more than $150,000 to the state and a Hispanic advocacy group as part of a settlement reached Tuesday.

New Jersey-based Locus Communications Inc., also known as GEO Telecom, must reimburse the Attorney Generals Office $50,000 for attorneys fees, costs and future audits, according to the settlement.

The company also must pay $105,000 to the Hispanic Institute, a Washington-based advocacy group, which worked with prosecutors to stop prepaid calling-card companies from targeting Hispanic immigrants through deceptive marketing and advertising tactics.

Many Florida residents use these cards to communicate with their family, friends and loved ones, Attorney General Bill McCollum said. These new standards will protect that essential bond of communication.

Organization president Gus West said the money will help the group continue investigations into the prepaid calling-card industry.

The Hispanic Institute will receive the money over three years.

An official with the Attorney Generals Office said the probe into Locus Communications started in July 2007.

The investigation showed the prepaid calling-card company offered customers unlimited minutes which were not unlimited, rounded up calls to three-minute increments and failed to disclose actual amounts of fees and surcharges, according to the settlement.

The company also advertised in Spanish but printed the disclaimer of fees and surcharges in English.

Under the agreement, Locus Communications must halt deceptive advertisements, provide 100 percent of the minutes advertised, and submit to three years of auditing by the Attorney Generals Office.

Locus Communications is the 13th company to reach a settlement with the attorney general over complaints related to prepaid calling cards.

In November, Business Telecommunications Services Inc., also known as ADMA Telecom Inc., paid the Hispanic Institute $75,000.

The Economic Crimes Division is conducting four formal investigations . . . and constantly reviewing dozens of other companies in this industry, an official at the Attorney Generals Office said.

The companies under investigation have reimbursed the state more than $1 million in costs

PCS Tags: Prepaid Phone Cards, Telephone Cards, Overseas Calling Cards, calling cards

PCS Popular Country: calling card to india, calling card china, calling card uk, phone card indonesia  Phone Card News Stats


<-- Back

International Phone Card Search

Calling From United States to:
Phone Card Name (Optional):
Provide Local Access in

Navigation Links:

Live Help!

My Rewards Program

Secured and Verified by:
About SSL Certificates
HACKER SAFE certified sites prevent over 99.9% of hacker crime.
Discover, Master, Visa, American Express
Your current IP is:

Phone Card Rates
Brazil Phone Card, Brazil Calling Card Flag   Brazil 0.2¢ Canada Phone Card, Canada Calling Card Flag   Canada 0.1¢
China Phone Card, China Calling Card Flag   China 0.1¢ Egypt Phone Card, Egypt Calling Card Flag   Egypt 3.1¢
France Phone Card, France Calling Card Flag   France 0.1¢ Germany phone card, Germany calling card flag   Germany 0.1¢
Iraq Phone Card, Iraq Calling Card Flag   Iraq 1.0¢ india phone card, india calling card flag   India 0.1¢
italy phone card, italy calling card flag   Italy 0.1¢ Japan Phone Card, Japan Calling Card Flag   Japan 0.3¢
Korea South Phone Card, Korea South Calling Card Flag   S. Korea 0.1¢ Mexico Phone Card, Mexico Calling Card Flag   Mexico 0.4¢
Nigeria Phone Card, Nigeria Calling Card Flag   Nigeria 2.8¢ Philippines Phone Card, Philippines Calling Card Flag   Philippines 4.6¢
Russia Phone Card, Russia Calling Card Flag   Russia 0.3¢ Taiwan Phone card, Taiwan Calling Card Flag   Taiwan 0.1¢
South Africa Phone Card, South Africa Calling Card Flag   S. Africa 0.9¢ USA Phone card, USA Calling Card Flag   USA 0.3¢
UK Phone Card, United Kingdom Calling Card Flag   UK 0.1¢ USA Phone card, USA Calling Card Flag   Vietnam 0.8¢
Phone Card News

More News...