CFPB-PR-241114-1 (11-14-24)
CFPB Orders Global Tel Link to Pay $3 Million for Illegally Freezing and Draining Payments Accounts for People Who Are Incarcerated – Company profited by taking funds from inactive accounts and blocking money transfers from friends and family used to pay for basic needs
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WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) took action against Global Tel Link Corporation (GTL) for illegally taking millions of dollars from more than a half million accounts and blocking money transfers to consumers who are incarcerated, which the consumers relied on for goods such as food, medicine, and clothing. The CFPB is ordering GTL and its subsidiaries to stop their illegal practices, pay at least $2 million in redress to victims, and pay a $1 million penalty to the CFPB’s victims relief fund.
“Global Tel Link took advantage of people who are incarcerated and their families, taking their money and preventing them from receiving money transfers needed to pay for basic necessities,” said CFPB Director Rohit Chopra. “People in correctional facilities, along with their family and friends, often have no choice whether to use these products and are exploited by companies that abuse their monopoly power to boost their own profits.”
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CFPB-PR-241114-1 (11-14-24)