Pay-Tel Warns Prison Call Rate Caps Will Breed New Problems

By Jimmy Hoover (October 9, 2015, 5:17 PM EDT) -- Pay-Tel Communications Inc. has asked the Federal Communications Commission to change plans for new rate caps for inmate calling services, telling agency staff that the proposal will allow providers to find ways to funnel charges to other areas.

In an ex-partes filing made available Friday, the inmate phone service company described a meeting with FCC Commissioner Mignon Clyburn, her legal adviser and several other staff to identify flaws in a recently-released "fact sheet" describing the proposal. The company said that the proposal does not eliminate the potential for "work-arounds" to the rate caps by companies that merely divert consumer funds that...

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