CFPB Cracks Down on Global Tel Link for Exploiting Incarcerated Consumers and Their Families

The Consumer Financial Protection Bureau (CFPB) has hit Global Tel Link Corporation (GTL), now operating as ViaPath Technologies, with a $3 million fine for exploiting incarcerated individuals and their families. The company was found to have systematically frozen and drained payment accounts, leaving those behind bars without access to the money they rely on for basic essentials like food, medicine, and clothing.

CFPB Director Rohit Chopra didn't hold back in his criticism of GTL’s practices: “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.” Chopra pointed out that GTL’s dominant position in the market allowed the company to manipulate consumers who had no other options.

GTL, along with its subsidiaries, Telmate, LLC and TouchPay Holdings, LLC, controls much of the market for services in correctional facilities, offering money transfer platforms for incarcerated people and their loved ones. Families send money into accounts that are used for commissary items or for services like phone calls, video visits, and messaging.

However, the CFPB’s investigation uncovered three key violations:

1. Blocking Accounts Over Chargebacks: GTL froze accounts when families disputed charges with their banks, preventing individuals from receiving new funds until the disputed amount (and often an additional fee) was paid.
2. Seizing Funds from Inactive Accounts: Between 2019 and 2023, GTL drained accounts that hadn’t been used for 90 or 180 days—affecting over 575,000 accounts—without notifying customers in advance or disclosing the policy.
3. Hiding Fees: GTL didn’t provide clear, upfront fee schedules for money transfers, leaving consumers unaware of the costs associated with various payment methods or channels.

In response, the CFPB has ordered GTL to:

• Return $2 Million to Victims: The company must refund consumers who were harmed by these practices, including those who were charged unnecessary fees, had funds seized, or had their accounts blocked over chargebacks.
• Pay a $1 Million Penalty: This amount will go into the CFPB’s victims relief fund to help address harm caused by such practices.
• Stop Exploitative Practices: GTL must stop blocking accounts over chargebacks, halt the seizure of funds from inactive accounts, and start fully disclosing all fees involved in money transfers.

The CFPB’s action brings attention to the struggles of families trying to support loved ones in prison, who rely on these funds for basic survival. GTL’s practices made it even harder for them to send money when needed most. For many families, contesting wrongful charges often meant losing access to vital financial resources, leaving them trapped in a system with little recourse.

This case also shines a light on the bigger issue of exploitative practices in the prison services industry, where monopoly contracts like those GTL holds leave consumers with little power to push back against abusive tactics.

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