AT&T sued by Washington DC for unused balances on calling cards
By Vlad Savov 
posted January 3rd 2010 3:10PM
posted January 3rd 2010 3:10PM
posted January 3rd 2010 3:10PM
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@ipxnsv Okay, here's how gift cards work: A store promises to take money in from one person (gift giver), and allow a different person to use that money in their store, and their store only. The incentive to the gift giver is that it seems like a more personal gift since it's to a specific place, and the incentive to the store is that now someone HAS to spend $50 or however much money the gift is for at that store, and that store only.
The way they make money on the gift cards is through their regular means of store markups and volume of sales, with a bit of a perk for the pre-defined spending amount of the original gift. The second they start adding expiry dates on gift cards, they are stealing money from the customers. Taking money in with no good or service exchanged. This is why totally free markets don't actually work. The customers get screwed.
@Tommy Five
That's funny, because I could've sworn that the gift cards I get that don't expire are the cards I might purchase again in the future. But... there's no law saying they have to do that. There are still gift cards that charge fees and steal from you every month. But people just don't get those anymore.
Huh, that's weird... if its not the law, and the companies doing that themselves in what benefits us all, it must be... the market? My god. No way - the market must be completely evil, right? /sarcasm
@paul34 Not exactly tommy.
They make money on human physiology. We are less likely to use a gift card than cash( hence the expirations and reductions in value after a certain time). We are also MORE likely to spend more money that is on the card .. netting them a plus.
@Tommy Five Not exactly tommy.
They make money on human physiology. We are less likely to use a gift card than cash( hence the expirations and reductions in value after a certain time). We are also MORE likely to spend more money than is on the card .. netting them a plus.
you buy a 45 dollar game with a 50 dollar card thinking oh man.. might as well use the entire 50. Buy something else thats 10 bucks more.. spending 5 more than the card was worth.
PS I read this in an article a few weeks back..
@paul34 Er, Google this: "Gift Card Expirations". The first result is a listing of state laws regarding expiration dates for gift cards. Nearly every state has one, because people got pissed off at companies for doing this same thing.
@ipxnsv I don't doubt for a second that the above-and-beyond spending is another perk of using gift cards. I do that all the time.
And it might even be true that people are less likely to use gift cards than cash, but then that disqualifies the need for an expiry date. If someone is never going to use that gift card, then that's a plus for the company, and a non-issue for the person with the gift card. The second there is an expiry date on it though, you are denied access to YOUR money, your cash. Gift cards should be considered as good as cash.
Sure, put a fee on it (after all, the business is acting as a "middle man", holding onto the giver's money for you to use later). Sure, adjust balance for inflation. Just don't tell me I can't use my aunt's money from two years ago to buy a shirt today. Cash has no expiry, why should gift cards?
And if they are going to have an expiry, I'd be much happier with the government getting the money. At least they do (some) things that benefit me.
Who in the hell uses calling cards? It's 2010!
@s2m0
Those of us that were deployed in Iraq.
So, you buy data, and don't use it.
AT&T take this back, and the government want it back?
But what I'm confused about, is when was data considered property?
Can the government take my unused hard drive space? :S
Hey, Government... STOP TAKING EVERYONE'S DAMN MONEY!!! GET YOUR OWN!!!
@Oxyrt The government is just taking it from someone who already took it from the people. At least they can use it for a greater good, in theory (national debt repayment, public works, jobs etc.).
@Tommy Five
my thoughts exactly, I would rather see the money in the hands of the government. People tend to focus on the corruption within the government, while no doubt theirs some corruption I would think its only a small percentage compared with the about productive spending (humanitarian aid, heath services, public works, welfare, science and education ect.)
now don't get me wrong, I think theirs LOTS of room to improve our government but when it comes to money I would rather see it in the hands of our Gov. than private corps.
@Tommy Five For a moment I actually though I saw something about the government putting the money to good use.
Will likely be used to fund a new toilet or something :D
@Oxyrt
plus this law is already in place, they use it at racing tracks for unclaimed tickets. Plus these calling cards are from people who throw away their calling cards with 1or 2 minutes on it, I don't know why this wasn't always in place.
@Tommy Five
Yes, providing services to people and improving the quality of living for people while giving them a choice is such a terrible thing for a company to do. The thing about a company is that, for many things, you can choose another company if you're not happy with the one you've got. With the government? Not really, because people are completely apathetic and naive about their own .gov
@paul34 The second AT&T does something for me, I will be okay with them stealing money from other people. Until then, I'll let the government take the unclaimed property and do something for me with it.
So...I really want one of those unused minutes ticking things...
Wonder if this will cause people to all of a sudden stop buying iPhones. ?
Test
Yeah this will smooth out governmental problems, trying to use minutes from AT&T's network. Why don't they just annex Verizon instead?
AT&T screwing its customers?
Hmph, what else is new.....
Do you know how the consumer can not be "ripped off" as some of you are saying? By using up your minutes. No one is forcibly taking anything away from consumers. They are reclaiming unused minutes beyond some expiry date. Buying a calling card means that you implicitly agreed to the expiry date, whatever it may be. I'd rather the government reclaim such lost property than a corporate entity. At least governments are accountable by the people, whilst corporations are only accountable to other greedy shareholders.
Basically. Why aren't people getting this?
@erasure25
I really don't understand people saying they are getting screwed by AT&T on this either.
To me it is like buying a gallon of milk. If you only drink half of it before the expiration date and it ends up going bad, does this mean that the grocery store ripped you off. Hell no it doesn't.
I say that if people are given a 100 minutes of phone service that is good for a year and they only use 80% of the cards value then it is 100% thier fault and their loss. The only way AT&T could ever rip them off is if they sold you a 100 minute card and then refused to let you use all 100 minutes prior to the experation date.
All this will do is make AT&T raise the rates on the cards to make up the for any money they have to give to the government. That and maybe they could do away with roll-over minutes and make people spend more to make up the difference.
From: District of Columbia
To: Cows of North America
Attention Cows,
It has come to the Districts attention that many consumers do not finish consuming all the milk they buy. As such you are greedy bad cows and we are suing you to get money we don't really deserve.
Thanks, and
Eat Les Chiknz
This is just another desperate move by the government to steal and redistribute wealth. They GD huge tax-and-spend libtards in DC feel it's their "right" to steal as much wealth from the private sector as possible. Hey government, GTFO of our live, mmk? Thanks!
@yoko1324
They just want to reinforce the notion that they own all people and property, and simply graciously allow us to keep certain portions of such things until they say otherwise. The sad thing is; most people think that's how it is. It's probably as unAmerican as a concept as you can get. Sad people don't just open their eyes for once... but I also suppose there's no time - can't miss the next episode of Jersey Shore.
I say, if yuo don't use them, you lose them. Don't toss out the cards, if you bought it, use the friggin things. Attorney General is gonna lose this one.
@pachi72 The government. All they do is take take take. This is yet another example of them trying to claim their doing something good, just to mask what the reality of their intentions are. As if they don't get enough from every tax payer in this country, they have to go and say, well, we'll have that too. I'll trust a private corporation over this corrupt, power hungry government any day of the week.
Greedy Pricks,
AT&T should just quit doing business in DC, problem solved, no phone service for DC , would be funny
@(Unverified)
Go ahead AT&T try that plan, you be immediately broken up by congress this time for good.
I'm pretty sure that At&t has been charging me Anytime minutes when I am talking during my Nights and Weekends time... Greedy and arrogant people must run this company
Once it hits the phone company, it isn't cash anymore. You've paid sales tax when the card is purchased, not when the funds are used. Therefore, while is may be communicated to you in "dollars", it is actually corporate scrip, not US$. Since it isn't currency, if it is "lost", it can only be given to the government as money to purchase services, which while it has value, would only be accepted at AT&T.
People really don't seem to understand this distinction, and it is an important one. Carriers are starting to change the balance from a scrip to a dollar balance, but it is only happening as part of their attempts to turn a prepaid account into a wallet.
I hope the NJ Legislature doesn't see this. Another cash cow to milk.
Right now carriers can lower the prices of the prepaid cards based on the rate of breakages, i.e. they can set the prices at a lower point than they could otherwise. I'm baffled as to how would the government argue that this situation needs fixing.
Cue 3 year expiration dates for calling cards :)
Super awesome question:
Who actually uses calling cards anymore?
it's about time someone regulates the prepaid calling card business. I remember a few years ago, i had a calling card from ATT that required a fee of the remaining minutes to do anything at all on it. it charged 4 minutes to see what the remaining balance was, 10 minutes a month for pinless dialing, etc. like it really costs them any money for those kind of services.
There's some money in my wallet I haven't used for quite a long time.
Maybe I should consider it 'expired' currency and give it to the government?
than if they don't*
Double do makes no sense.
And that's what I say
Sigh, my correction left my thread, I got disconnected like a much discussed phone on a well-known network you could say.
Sounds like Typical Att Scum strategy to screw its customers out of as much money as they can all while being Shady and unethical.
Yet another Att Fail, this is Nothing new at all. Just another nail running them into the ground.
Good luck with that Att! Peace out!