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Study Reveals Continued Fraud in Calling-Card Industry -- but also Shows Some Good Players

WASHINGTON, DC (April 1, 2010) -- A second independent study by the Hispanic Institute has reveals continued fraud in the pre-paid calling-card industry. However, some cards sold by companies like AT&T and Verizon performed exceptionally well, delivering more minutes than promised. 

Read the Full Document [PDF]

The Hispanic Institute, in conjunction with independent telecommunications expert Network Analytics, tested cards from 11 different international pre-paid calling cards service providers/distributors for efficacy and value to see whether they lived up to the promises of their advertising.

Pre-paid phone cards are a cost-effective option for those calling abroad. They are especially popular among recent immigrants who use calling cards to keep in touch with friends and family abroad.

Many calling-card firms employ scams that involve deceptive advertising, publicizing a certain number of minutes but delivering far fewer. Hispanics are hit particularly hard.

"Fraudulent international pre-paid calling card companies, who continue to falsely advertise the minutes that that they offer, hurt good companies that are trying to be honest brokers," West said. "It is important for Americans to be able to make affordable international calls. Calling cards, along with other technologies, are an integral part of achieving this connectivity. We want to protect this industry so that we can continue to grow this economy. One of our concerns is that fraudulent companies will force Congress and State legislatures to enact laws that drive good companies out of this business. What is needed is a national law that preempts State law and protects the good calling card providers."

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Journalists who wish to interview Gus West can contact him at (202) 544-8284 or gwest@thehispanicinstitute.net

About the Hispanic Institute

The Hispanic Institute is a non-profit organization dedicated to providing an effective education forum for an informed and empowered Hispanic America. For more information, go to www.thehispanicinstitute.org.

 

 

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906 Pennsylvania Ave. SE | Washington , DC 20003 | Email: thi@thehispanicinstitute.net