• Home
  • Prepaid Phones
Consumer Fraud

Were You Improperly Charged for a Prepaid Phone?

This Alert Affects:

Consumers who bought prepaid phone services.

Damages
It has been alleged that certain pre-paid mobile phone companies may be seizing the money in their customers' accounts should they fail to pre-pay the monthly or daily payment within 60 days.
Company(ies)
Pre-paid mobile device companies
Additional Details
Pre-paid phone companies allow their consumers to purchase credit in advance of service use. This credit is then used to pay for mobile phone services at the time the service is accessed. This is also known as pay-as-you-go, pay and go, pay-as-you-talk and prepaid wireless.
Date
The CARD Act states that the value of pre-paid cards cannot expire before five years.

Consumers who purchased pre-paid phone services and had their account funds forfeited may have legal recourse. A consumer protection law known as the CARD Act states that the value of pre-paid cards cannot expire before five years. It has been alleged, however, that certain mobile device companies are taking the money from the accounts of customers who fail to pre-pay the monthly or daily payment within 60 days - well before the expiration date outlined by the CARD Act - even if they later decide to pay for the service.

Pre-Paid Phone Companies Under Investigation

ClassAction.org is currently investigating whether the following pre-paid phone companies are violating consumers' rights as outlined by the CARD Act.

  • T-Mobile Prepaid
  • Virgin Mobile
  • AT&T GoPhone
  • Sprint Mobile
  • MetroPCS
  • NET10
  • Cricket
  • Boost Mobile
  • TRACFONE
  • Verizon Wireless Prepaid
  • PayLo by Virgin Mobile
  • Claro
  • Jitterbug
  • H2O Broadband
  • Global Direct
  • Ezetop
  • Truphone Local Anywhere
  • H2O Wireless

If you purchased pre-paid phone services and had the money in your account forfeited, you may be able to participate in a potential lawsuit against the mobile device company.

Do Pre-Paid Phone Customers Have Legal Recourse?

Telephone services are exempt under the CARD Act; however, texting, internet and email are not included in these exemptions. Pre-paid mobile phone companies provide plans for unlimited, email text, web and talk if their customers pay a certain amount each month or day for their use. When a mobile device company seizes the remaining balance in a customer's account after they fail to pre-pay the full monthly or daily payment within 60 days, they may be violating the CARD Act.

Class Action Alerts

Sign up for our free newsletter and class action updates.