FTC: Talk fast with these phone cards
The Federal Trade Commission claims that CTA, a major distributor of prepaid phone calls, misrepresents the number of calling minutes and charges hidden fees. The federal agency recently asked a U.S. District Court judge in New Jersey to halt these practices pending a trial.
The New Jersey-based company, which does business as Clifton Telecard Alliance, hasn't responded yet to requests for comment. We'll post their response as soon as we get it.
Regardless of the merits of the FTC's case, this is a reminder to make sure you understand the terms of phone cards, even if it is in the fine print.
In this case, the FTC says it bought 46 CTA cards in stores and none of them provided the calling minutes as advertised. For example, the FTC says, a card that promised 40 minutes calling time to El Salvador cut off at 27 minutes; and a 30 minute calling card to Egypt cut off around 10 minutes.
The cards sell in denominations of $2 to $20, typically to immigrants wanting an inexpensive way to call relatives in other countries, the FTC says. The cards are sold under various brand names and often sold at gas stations, grocery stores and newsstands.
A native of Vietnam, 