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Do You Know Where to Find the Hidden Costs of Prepaid Phone Cards?

March 1st, 2010 · No Comments

It can be expensive to call outside of the country. Why not 2, 4, or 6 cents a minute?

These are some of the claims from some prepaid phone cards.

However, once you realize that you are not getting what you thought, it’s too late.

Let’s look at Diamond phone cards.

The card claims that you can call Mexico for 400 minutes, for just a couple of dollars.

The FTC found that you only receive 106 minutes.

They also claim that the business’s 50 minute card to Honduras, only provided customers with 20 minutes.

Diamond’s $2 and $5 cards subtracted a $.79 maintenance fee from the total.

The FTC states that information can be found, but at the end of the ad in barely readable text.

In 2010, the FTC cited deceptive business practices as the reason for legal action against prepaid phone card providers Alternatel, Voice Prepaid, Mystic Prepaid, and Clifton Telecard.

A settlement was reached between these companies and the FTC.

Diamond deferred to their attorney who indicated that the now defunct business has sold its brand to another company.

The Federal Trade Commission wishes for the two leaders of Diamond to return the funds they made from dishonest business dealings.

Take care of yourself. Beware of connection fees, monthly service costs, pre-set minimum call lengths, short-term expiration dates, activation and/or set-up fees and expansive billing increments.

Even though you only used a single minute, you might be charged in five minute segments.

Investigate the company’s history on the Internet.

Get complete answers to all your questions before making the purchase; once you’ve handed over the cash, it’s too late.

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