Calling Card Consumer Protection Act

Floor Speech

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Ms. MATSUI. Madam Speaker, I yield myself such time as I may consume.

Madam Speaker, I rise in strong support of H.R. 3993, the Calling Card Consumer Protection Act. I want to thank Mr. Engel for introducing this important piece of legislation, and Chairmen Waxman and Rush for their leadership in guiding the bill through the committee.

I am pleased that the House is taking up this important bipartisan measure which will prevent fraud and abuse in the prepaid calling card industry. The bill was voice-voted out of the Energy and Commerce Committee.

American consumers spend billions of dollars on prepaid calling cards. These cards are generally marketed to a particular group of consumers, including immigrants, college students, seniors, and military personnel. Unfortunately, the prepaid calling card market is rife with fraudulent and deceptive practices. Many prepaid calling cards fail to deliver the full number of advertised minutes. Cards often contain hidden charges, such as connection fees, maintenance fees, and disconnect fees, as well as inconsistent rates per minute.

In short, consumers often find that because of misleading information, inconsistent claims, and buried disclosures, they are left with an insufficient product with little or no recourse. To address these issues and protect American consumers, H.R. 3993 will require calling card providers and distributors to clearly and conspicuously disclose all relevant information so that consumers can make informed choices.

These disclosures would include critical information such as contact information for the provider, the number of minutes available or the dollar value of the card.

Importantly, H.R. 3993 would mean the end of hidden fees in the prepaid calling card market. Entities would be required to disclose all fees, charges, limitations, changes in value, or other terms that impact the use of the card.

Consumers who purchase prepaid calling cards should get what they pay for. If they don't, consumers should have recourse, and bad actors should face tough enforcement.

I urge my colleagues to support H.R. 3993, and I reserve the balance of my time.

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