PREPAID CALLING CARDS LITIGATION

 NOTICE TO UPPO MEMBERS

PREPAID CALLING CARDS LITIGATION

 Prepared by: Marcella Easly, GRAC Awareness and Advocacy Subcommittee Co-Chair

The District of Columbia Attorney General Peter Nickles filed a complaint in the District of Columbia Superior Court against AT&T Corp. seeking to recover consumers' unused balances on prepaid calling cards.  The complaint for declaratory judgment was filed in the District of Columbia Superior Court on Dec. 31, according to the attorney general's office. An initial scheduling conference will be held on April 23, according to D.C. Superior Court. (District of Columbia v. AT&T Corp., case no. 009655).

The attorney general's office alleges that "AT&T's prepaid calling cards must be treated as unclaimed property under district law", and therefore unused balances that remain on prepaid AT&T calling cards for a period of more than three years should be returned to the customer.

Previously, the District of Columbia sued telecommunication companies, alleging violation of the False Claims Act (FCA) and Consumer Protection Procedures Act (CPPA) involving the companies' retention of unused balances on calling cards. The DC Superior Court granted defendants' motion to dismiss.  The defendants appealed the motion, and the Court of Appeals ruled:

(1)  public disclosure bar in FCA precluded qui tam action against telecommunication companies by user of prepaid phone card, and

(2) amendments to CPPA permitted user to pursue his CPPA claim against telecommunication companies on behalf of himself and the general public regardless of whether he had experienced an injury.

The case was affirmed in part, reversed in part, and remanded.