On November 14, 2024, the CFPB took action against Global Tel Link (GTL) for illegally taking millions of dollars from over 500,000 accounts and blocking money transfers to incarcerated consumers, who depend on the funds for essentials like food, medicine, and clothing. The CFPB ordered 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.
GTL is a Virginia-based corporation doing business as ViaPath Technologies. The companies contract with correctional facilities across the U.S. to offer products and services, including money transfers, to incarcerated people and their families. Friends and family use these services to deposit money into an inmate's account, which can then be used to buy items from the facility’s commissary. GTL and Telmate also provide accounts to pay for telephone services, online messaging, and video visitation.
The CFPB found that Global Tel Link engaged in unfair, deceptive, or abusive acts or practices by:
Blocking consumer accounts and preventing money transfers. GTL and its subsidiaries unfairly froze the accounts of incarcerated consumers after a chargeback was filed. As a result, these individuals were blocked from receiving funds via credit or debit card until the chargeback was repaid, along with a possible additional $25 fee, even if they weren't responsible for the chargeback.
Taking funds from inactive accounts unlawfully. From January 2019 to January 2023, GTL and Telmate seized funds from approximately 575,000 consumers' "unified accounts" - used for phone, video visitation, and messaging services - if there was no transaction for 90 or 180 days. This policy was not properly disclosed, and consumers were not notified before their funds were taken.
Hiding fees from consumers. GTL and its subsidiaries failed to provide complete fee schedules for money transfers, leaving consumers uninformed about costs based on the payment channel, method, or amount deposited.
The CFPB’s order requires GTL, Telmate, and TouchPay to:
Return at least $2 million to harmed consumers. Companies must refund all fees and chargeback balances paid by friends and family of incarcerated individuals to unblock accounts, even if no chargebacks were filed. They must also return amounts taken from inactive unified accounts.
Pay a $1 million penalty. GTL and its subsidiaries will pay a $1 million civil penalty to the CFPB’s victims relief fund.
Stop blocking accounts, stop seizing funds from inactive unified accounts, and properly disclose fees. Companies cannot block accounts for consumer chargebacks, retain funds in inactive accounts, and must disclose full money transfer fee schedules.
Read the CFPB’s press release here.
The Consent Order can be found here.