GTL, DSI Accused of Overcharging for Inmate Calls

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A proposed class action out of Pennsylvania alleges Global Tel*Link Corporation (GTL) and subsidiary DSI-ITI, LLC charge “unnecessary and unconscionable” rates and fees for telecommunications services provided to correctional facilities in the state.

The lawsuit centers on the defendants’ alleged “abuse of their monopoly power” over phone calls placed to and from correctional facilities in Pennsylvania. The case says the defendants’ power allows them to charge rates “more than 100 times higher” than market rates. 

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

Moreover, GTL, according to the lawsuit, requires inmates’ contacts to open a credit/debit account with the company in order to use its phone services. The case adds that inmates’ contacts are charged substantial “administrative costs” – about 20 percent of the initial deposit amount and any subsequent deposits when the account is reloaded – without being notified of such through account statements.

The case further alleges that the defendants not only charge customers an undisclosed $5 fee when they close their accounts, but never inform them that their remaining balances will be forfeited after 90 days without use. According to the suit, all of this is “done without the prior consent or approval of the inmates and/or their families.”

All told, the lawsuit alleges the defendants suppress competition by signing exclusive contracts with correctional facilities. These deals, the complaint claims, allow the defendants to be the sole provider of telecommunications services in exchange for kickbacks disguised as “site commissions,” and for free maintenance and support services for software programs.