Sunday, January 3, 2010

AT&T Underfire By Washington D.C.'s Attorney General

It would seem that the attorney general for Washington D.C. has filed a lawsuit against an AT&T inc branch, seeking to recover consumers unused balances on prepaid calling cards. The lawsuit states that AT&T should turn over unused balances left on prepaid cards where the last known address is Washington D.C. and have not used the card in three or more years.

Most states have an Escheat law (Unclaimed Property) that requires certain deposits, refunds, estates and much more, be turned over to the state after it goes unclaimed for a set period of time. The state will then hold it for a certain length of time (varies state to state) and if it still goes unclaimed, the property will revert to the state.

The attorney general for Washington D.C. claims that AT&T prepaid calling cards fall under Escheat Law as unclaimed property. These left over minutes are referred to as “Breakage” in the industry, and total in the neighborhood of 5 to 20 percent of the total balances purchased by customers

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