Ilinois AG sues two calling card companies

Illinois Attorney General Lisa Madigan filed lawsuits against two companies accused of deceptive marketing practices concerning prepaid calling cards targeted at Chicago area immigrant communities. One lawsuit claims a Chicago-based company provides up to 50 percent fewer international call minutes than advertised on its cards, while the other suit alleges a Carlsbad, Calif.-headquartered operation sells cards that include extensive and hidden fees.

The Nov. 3, 2011, Cook County Circuit Court filings are against Chicago-based NTI Inc. and Carlsbad-based Nobel Tel LLC. Madigan said NTI, which markets cards through Chicago-area convenience and telecommunication stores, does not provide card users the number of call time minutes advertised, averaging 50 percent fewer minutes.

According to Madigan, Nobel Tel sells, distributes and markets prepaid cards loaded with hidden fees, including "hang-up" fees and daily usage charges. Madigan said Nobel Tel markets call time as "units" that do not represent actual minutes. "Consumers need to read the fine print on prepaid calling cards," Madigan said. "Their advertising is extremely misleading about the actual number of minutes offered, and they're loaded with hidden fees that make their value questionable at best."

The lawsuits are being handled by the Illinois attorney general's Consumer Fraud Bureau.

The Green Sheet Inc. is now a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals. Click here for more information.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.