[IMC] {ptsolkas at prisonlegalnews.org}: Update from Stop Prison Profiteering Campaign on JPay and Prisoner Release Cards

[Stuart Levy]

(This was sent to the main IMC mailing list - looks interesting for 
CUCPJ too.)

Subject:
Update from Stop Prison Profiteering Campaign on JPay and Prisoner 
Release Cards
From:
Panagioti Tsolkas <ptsolkas at prisonlegalnews.org>
Date:
9/18/15 3:32 PM

To:
imc at ucimc.org


Greetings,

You are recieving this email as either a representative of an 
organization who signed on to our comment to the Consumer Financial 
Protection Bureau, or a supporter of HRDC's Stop Prison Profiteering 
Campaign. Please use the text and links below to share with your 
organization's members, your activist networks, your media contacts, and 
your social media outlets.

Don't hesitate to contact me with any questions.

In struggle,

Panagioti Tsolkas
HRDC's Stop Prison Profiteering Campaign

-------------

*/From the /**/Stop Prison Profiteering campaign page/* 
<http://org2.salsalabs.com/dia/track.jsp?v=2&c=xG4LY9Ow6dLbe9Oju0XZ9kQlUFjEZtDK>*/:/*

In June 2015, JPay filed a rebuttle to the Consumer Financial Protection 
Bureau (CFPB 
<http://org2.salsalabs.com/dia/track.jsp?v=2&c=%2BBaAYQvReHwiIj01E%2FULLkQlUFjEZtDK>) 
regarding a comment by the Human Rights Defense Center (HRDC) on behalf 
of 68 organizations 
<http://org2.salsalabs.com/dia/track.jsp?v=2&c=wq8L5Uipxo43Eu4AKgwiFUQlUFjEZtDK> 
which addresed the problems with forcing people into financial contracts 
with the predatory companies which profit off the release debit card 
industry.

/*JPay's rebuttle comment can be found in full by clicking here. 
<http://org2.salsalabs.com/dia/track.jsp?v=2&c=sxngzV1MqyU93tgZawhXOUQlUFjEZtDK>*/

On September 10, 2015, HRDC filed a response to JPay's rebuttle, 
addressing their allegations point by point.

/*HRDC's response to JPay, including attachments from contracts 
retrieved through extensive public recoirds requests, can be found by 
clicking here. 
<http://org2.salsalabs.com/dia/track.jsp?v=2&c=JvhCvV%2Bbjg0SS%2F5BgdaHs0QlUFjEZtDK>*/

The following text is an excerpt from HRDC's response to JPay's rebuttle:

    How much is the ability to continue financially exploiting prisoners
    and their families worth to Securus
    <http://org2.salsalabs.com/dia/track.jsp?v=2&c=EvQDMygHZzAOmUzzlifKtkQlUFjEZtDK>?
    At least $250 million – JPay’s purchase price. This illustrates the
    urgent need for the CFPB to protect prisoners, ex-prisoners and
    arrestees who are exploited by having release debit cards foisted on
    them with no choice in the matter.

    Consumer choice is a key issue in these pending regulations. JPay’s
    recent merger illustrates that their priority is in securing the
    ability of hedge funds to profit at the expense of the poorest and
    most vulnerable members of our society. This re-affirms our efforts
    to ensure regulations are in place to protect consumers from
    exploitive products such as their release cards.

    After reviewing contracts and related public records from several
    states which JPay cites in its ex-parte filing, not only have we
    been unable to verify statements the company presents in its
    defense, we have found outright contradictions in the existing
    contracts obtained by HRDC through public records requests in close
    proximity to the date of JPay’s ex-parte letter.

    For example, on page 4 of its filing, JPay says it has “not charged
    for customer service and account cancellation in any state for over
    one year.” Yet current contracts which include fee schedules do not
    indicate this is the case.

    Georgia Department of Corrections (GDOC) contract information
    provided to HRDC on April 28, 2015 indicates that JPay charges a
    customer service fee of either $0.25 per minute (automated) or $1.00
    per minute (live) for phone calls. If JPay has voluntarily removed
    this fee over the past year it has not stated that in any amendment
    to the contract, which the GDOC was required to produce pursuant to
    our public records request....

    The most recent amended JPay contract made available by the Colorado
    Department of Corrections (CO DOC) also indicates a customer service
    charge of $.25 if automated and $1.00 for live customer service (not
    specified as “per minute”). This contract also includes a $1.50
    “print statement” fee which is not listed in JPay’s ex-parte letter...

    JPay alleged: “In some states, including Florida and Louisiana, no
    fees apply to activating or using JPay's release cards.”
    Additionally, the Louisiana Department of Corrections fee table in
    the ex-parte letter indicates there are no fees aside from $5.00 for
    a replacement card, yet the contract language we received from the
    Louisiana DOC pursuant to a public records request includes a $12.95
    “fee per card issued.” ... We found no specific mention either way
    regarding activation fees in Florida’s JPay contract.

    These fees could easily amount to a significant cost to release
    debit card users, particularly if they are not receiving accurate
    information about the fees they are being assessed for basic
    functions of debit card use.

    Even if JPay has changed or reduced certain fees as alleged –
    essentially admitting that its prior practices were predatory – the
    absence of contractual language related to those changes offers no
    assurance that consumers will be protected in the future.

    ....

    While the company may not provide kickbacks for its release debit
    cards, it does so for most of its other services – which serves as
    an inducement for correctional agencies to “bundle” release cards
    when they contract with JPay for money transfer services, video
    visits, email services, etc. Thus, release cards are the proverbial
    tip of the iceberg. Also, note that with JPay’s purchase by Securus
    we can expect additional bundling of the combined companies’
    contracts and the rapid expansion of the exploitive release debit
    card model to the 1,600 detention facilities that currently contract
    with Securus for phone services.

    Based on the foregoing and our original comment, we reiterate our
    request that the CFPB ban the compulsory use of release debit cards
    for prisoners, arrestees and other detention facility populations,
    and ban all fees associated with such cards when consumers do opt in
    to use them. We ask that you consider these matters with respect to
    the rulemaking to amend Regulation E, Docket No. CFPB-2014-0031, RIN
    3170-AA22.
    <http://org2.salsalabs.com/dia/track.jsp?v=2&c=WXX9UgF9yvP8cv96jkb%2F%2BEQlUFjEZtDK>

    -----------------------------------------

/*If you support this effort, */*/donations to HRDC's Stop Prison 
Profiteering Campaign can be made here./ 
<http://org2.salsalabs.com/dia/track.jsp?v=2&c=V1pAmUzBG0Lda8EpeZEO7kQlUFjEZtDK>*


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