Global Tel*Link Class Action Says Inmates Overcharged for Phone Calls

A class action lawsuit filed in Pennsylvania federal court claims that Global Tel*Link Corporation (GTL) overcharges prison inmates for phone calls.

GTL and its subsidiary DSI-ITI LLC reportedly use their monopoly on the correctional facilities in Pennsylvania to charge “unnecessary and unconscionable” rates to inmates and their friends and family.

“The market rate for competitively priced prepaid calling cards is approximately 1¢ to 2¢ per minute for calls within the United States,” the GTL class action lawsuit claims. “Depending upon the country [sic] being called, Defendants’ rates are in excess of 20-30¢ per minute in Pennsylvania.”

In addition to unfair rates, GTL allegedly charges their customers unfair and undisclosed fees.

The GTL class action states that the company forces the contacts for inmates to open an account with payment information in order to use their services.

These accounts are allegedly charged for “administrative costs” which may be as much as 20 percent of the initial deposit amount. Contacts are reportedly not informed of these charges.

When individuals close their accounts, GTL reportedly charges them a $5 fee and forfeits their remaining balance after 90 days without use. Similarly to the administrative costs, customers are not informed of these terms and do not consent or approve these charges, the GTL class action lawsuit claims.

Lead plaintiff Linda Godfrey says opened a GTL account in 2018 and placed funds in the account so she could receive calls through the telemarketing company.

On one occasion, Godfrey was reportedly charged $10 on her credit card. However, this amount was allegedly subject to a $3.33 fee, leaving only $6.67 as a deposit amount.

On another occasion, Godfrey allegedly was charged $20 on her credit card but the amount was subject to a fee of $3.65 – leaving only $16.35 as a net deposit amount.

Despite allegedly using unfair techniques to force money from consumers, GTL reportedly maintains its monopoly on the market. According to the class action lawsuit, GTL maintains its position by suppressing other companies through exclusive kickback contracts with correctional facilities.

The GTL class action states that these contracts secure GTL the position as sole telecommunications provider while promising kickbacks under the guise of “site commissions,” free maintenance, and additional support for software programs.

“These incentives -the free maintenance and support services- result in huge annual savings to the Pennsylvania correctional facilities that participate in the scheme with the Defendants,” the GTL class action lawsuit claims. “As a result of the absence of competition, inmates and their families pay significantly more to receive and/or make a call from prison than for their basic monthly phone service.”

Godfrey seeks to represent a Class of Pennsylvania individuals who were incarcerated in a state prison who used a GTL phone system provided by the company.

Also included in the Class are individuals who opened an account with GTL to receive calls from a Pennsylvania prison inmate.

The GTL class action seeks compensatory damages, disgorgement, restitution, court costs, and attorneys’ fees.

Godfrey and the proposed Class are represented by Marc. H. Edelson of Edelson & Associates LLC.

The GTL Jail Phone Rates Class Action Lawsuit is Godfrey v. Global Tel*Link, et al., Case No. 2:19-cv-00533-NIQA, in the U.S. District Court for the Eastern District of Pennsylvania.