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