[Congressional Record Volume 156, Number 96 (Thursday, June 24, 2010)]
[Extensions of Remarks]
[Page E1189]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  CALLING CARD CONSUMER PROTECTION ACT

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                               speech of

                       HON. JANICE D. SCHAKOWSKY

                              of illinois

                    in the house of representatives

                        Wednesday, June 23, 2010

  Ms. SCHAKOWSKY. Madam Speaker, I rise today in support of H.R. 3993, 
the Calling Card Consumer Protection Act. I congratulate my colleague 
Mr. Engel for introducing it.
  Today, more than 276 million American households--89 percent of the 
U.S. population--have cell phones. But prepaid calling cards remain a 
huge industry--worth $4 billion in 2007.
  They are particularly popular among college students, as well as 
military personnel and immigrant communities--people who frequently 
make international calls.
  My district is one of the most diverse and international in the 
Nation. Almost one-third, 31.6 percent, of my constituents are foreign-
born, first-generation American residents. So calling cards are very 
important for them.
  Unfortunately, the calling card industry is full of deceptive 
advertising and hidden fees. A card may say it is worth 250 minutes, 
but you may get 200 or 100 once you actually use it. Too often, calling 
cards have no information listed about connection fees, varying rates-
per-minute, fees charged each week that you do not use the card, or 
even fees for just hanging up. When those fees aren't fully disclosed 
to consumers, we have a serious problem.
  Earlier this year, in the wake of the devastating earthquake in 
Haiti, I heard from many of my Haitian constituents who were using 
calling cards to try to reach their loved ones. Because of the high 
fees placed on the cards and the lack of clarity about fees and terms, 
they were going through dozens of cards without ever having a call 
connected.
  At the time, I sent letters to a number of calling card companies. I 
encouraged them to reach out to their local Haitian communities and to 
give refunds or issue free cards to customers who bought their cards 
and had the time run out before the call connected.
  Mr. Engel's bill would ensure that fees, rates, expiration dates or 
limitations of calling cards are clearly and fully disclosed to 
consumers. This is an important consumer protection bill and I 
encourage all of my colleagues to support it.

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