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CFPB Orders Global Tel Link to Pay $3 Million for Illegally Freezing and Draining Payments Accounts for People Who Are Incarcerated — WA (2025)

Updated August 19, 2025

The Consumer Financial Protection Bureau ordered Global Tel Link to pay $3 million for illegally freezing and draining payment accounts belonging to incarcerated individuals. This represents the first recorded settlement of this type in Washington state, as typical "other" category cases in WA have a $0 median value.

Type
Other
Amount
$3,000,000
Location
None, WA
Source
Consumer Financial Protection Bureau

Case Details:

Title: CFPB Orders Global Tel Link to Pay $3 Million for Illegally Freezing and Draining Payments Accounts for People Who Are Incarcerated
Amount: $3,000,000
Location: WA
Date: August 2025
Type: Other
Source: Consumer Financial Protection Bureau

Opening Summary

The Consumer Financial Protection Bureau ordered Global Tel Link Corporation to pay $3 million in August 2025 for illegally freezing and draining payment accounts belonging to incarcerated individuals and their families.

Case Background

Global Tel Link Corporation (GTL) is a major provider of communication services to correctional facilities across the United States, offering phone, video calling, and money transfer services to incarcerated individuals and their families. The company operates payment systems that allow families to deposit money into accounts used for various services within correctional facilities, including commissary purchases, phone calls, and other approved transactions.

The CFPB's investigation revealed that GTL engaged in problematic practices regarding these payment accounts between 2019 and 2023. The company's actions particularly affected vulnerable populations who rely on these services to maintain contact with incarcerated family members and ensure their basic needs are met while in custody. These payment systems are often the primary means through which families can provide financial support to their incarcerated loved ones, making GTL's practices especially harmful to already financially stressed households.

The enforcement action represents part of the CFPB's broader efforts to protect consumers in the correctional facility services market, where limited competition and captive audiences can create conditions ripe for exploitation.

Key Allegations / Claims

The CFPB alleged that GTL violated federal consumer protection laws by improperly freezing customer payment accounts and draining funds from these accounts without proper justification or adequate notice to consumers. Specifically, the bureau found that GTL would freeze accounts based on insufficient evidence of suspicious activity, often leaving families unable to access their own money or send funds to incarcerated relatives.

Additionally, GTL was accused of automatically draining dormant accounts after relatively short periods of inactivity, taking money that rightfully belonged to consumers. The company allegedly failed to provide adequate notice before taking these actions and made it unnecessarily difficult for consumers to recover their funds once accounts were frozen or drained.

The CFPB also alleged that GTL's customer service processes for resolving account issues were inadequate, leaving consumers with limited recourse when their accounts were improperly frozen. The company's practices disproportionately harmed families who were already facing financial hardship due to having an incarcerated family member, effectively cutting off their ability to provide support when it was most needed.

Resolution & Amount

The case was resolved through a consent order requiring GTL to pay $3 million in penalties and consumer redress. The settlement includes both monetary relief for affected consumers and requirements for GTL to change its business practices going forward.

As part of the resolution, GTL must implement new procedures for account freezing and fund recovery that provide consumers with better notice and more reasonable opportunities to resolve account issues. The company is also required to improve its customer service processes and make it easier for consumers to recover improperly frozen or drained funds.

The $3 million will be used both to compensate consumers who were harmed by GTL's practices and to serve as a civil penalty. The CFPB will oversee the distribution of funds to affected consumers and monitor GTL's compliance with the new requirements.

Applicable Law / Enforcement

This enforcement action was brought under the Consumer Financial Protection Act, which gives the CFPB authority to take action against companies that engage in unfair, deceptive, or abusive acts or practices (UDAAP) in consumer financial markets. The CFPB found that GTL's practices violated prohibitions against unfair and abusive practices.

The case also relates to federal regulations governing prepaid accounts and electronic fund transfers, which require companies to provide consumers with proper notice and reasonable access to their funds. GTL's practices of freezing accounts without adequate justification and draining dormant accounts violated these consumer protection standards.

The enforcement action demonstrates the CFPB's commitment to protecting consumers in specialized markets like correctional facility services, where traditional market forces may not adequately protect consumer interests due to limited competition and captive audiences.

Context & Benchmarks

Statewide benchmarks for this case type are not currently available in our database. However, this case represents a significant enforcement action in the correctional facility services market, highlighting ongoing concerns about consumer protection in industries that serve vulnerable populations with limited alternatives.

Sources