Washington DC Sues AT&T Over Unused Calling Card Minutes – But There Is A Twist

Posted by on Jan 5, 2010 | 2 Comments

I must admit every once in awhile you read about a creative way that some government entity has come up with to line their coffers, but this seems to be unique. The Washington DC Attorney General is suing AT&T for all of the unused minutes left behind by consumers who have not used the entire amount on their prepaid calling cards. The claim is that this is unclaimed property and belongs to the district, if the calling card user was a resident at the time the calling card was purchased.

In a recent article it further states that:

According to the attorney general’s office, that sum, known in the industry as “breakage,” represents some 5 to 20 percent of the total balances purchased by consumers who use the calling cards.

States and municipalities have often similarly used unclaimed property laws, known as escheat laws, to claim ownership of unused retail gift card balances.

A spokesman for AT&T declined to comment on the lawsuit.

One would think that the monies for the unused minutes should be returned to the users. But this is what makes this claim unique. DC wants to keep the money for themselves. Great thinking and one that may be copied by other jurisdictions. I was just thinking about the gift cards that are not fully used. That would also be a great source of revenue.

You have to love it when anyone can stick it to corporate America.

Comments welcome.

Source.

  • http://www.quickcable.com Michael Palecek

    Yes, lets stick it to the people who provide jobs and help the people who take my money and waste it!! This is a great idea!

  • http://NoSite Bones of Abraham

    People need to stop with this SUPPLY side attitude and realize that today’s corporations are not even what corporations were created for. Instead of thinking that some joe or a random combination of joes will do for me, thanks I rather think for me. At least I can vote in my local jurisdiction – last I checked there is ZERO democratic way to interfere in corporate decision except for shareholder and upper echelon management in the corporate headquarters.

    Alas -> Michael Palecek you are a fkn moron.