Monday, March 30, 2015
Just another way to milk the poor dry
People go to prison as punishment, that is not in question, what is in question is the cruel punishments visited on their families who try to maintain contact with their loved ones. Talking to them should be one of the easiest ways but thanks to the spirit of "free enterprise" it has become for many the most expensive.
Until the 1990s, inmates could place and receive calls to lawyers and family members at rates similar to those outside prison walls. But the prison phone system is now a $1.2 billion-a-year industry dominated by a few private companies that manage phones in prisons and jails in all 50 states, setting rates and fees far in excess of those established by regular commercial providers. The business is so considerable — some 500 million prison and jail phone calls totaling more than six billion minutes in 2014 — that it has caught the eye of private equity firms.Fierce opposition means they will fight to the death to protect their gravy trains. And it must be one heck of a train if private equity vultures are becoming interested. And all this on the backs of families that can ill afford this vicious gouging. If they could afford it they would have paid a good lawyer to keep their loved one out of jail.
Now, after years of complaints from prison-rights groups and families of the incarcerated, the Federal Communications Commission is investigating the financial intricacies of the industry, which has been largely unregulated.
At the core of the inquiry are the hundreds of millions of dollars in concession fees, known as commissions, paid by the phone companies to state and local prison systems in exchange for exclusive contracts. The fees help drive phone charges as high as $1.22 per minute, and the leading companies say they need to charge at least 20 cents per minute, compared with typical commercial rates of about 4 cents a minute.
In 2013, a total of $460 million in concession fees was paid to jails and prisons, and to state, county and local governments, according to the F.C.C. The fees are legal, and they cover a range of expenses within prisons as well as outside.
The agency is expected to rule this year on whether to ban the concession fees and limit the costs of prison phone calls.
An analysis released in 2013 by the F.C.C. said the fees “have caused inmates and their friends and families to subsidize everything from inmate welfare to salaries and benefits, states’ general revenue funds and personnel training.”
It added, “The companies compete not based on price or service quality, but on the size of the commission.”
The possibility of eliminating the fees has met fierce opposition from prisons and jails, sheriff’s departments and local officials. Some law enforcement groups have said changes could stoke inmate violence against prison guards because there might be less money for security.
Subscribe to Posts [Atom]
Post a Comment