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HRDC comments to Consumer Financial Protection Bureau re Arbitration Agreements - Aug. 2016

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Human Rights Defense Center
DEDICATED TO PROTECTING HUMAN RIGHTS

August 22, 2016

Submitted Online Only

Monica Jackson
Office of the Executive Secretary
Consumer Financial Protection Bureau
1700 G Street NW
Washington, DC 20552
Re:

Comment for Docket No. CFPB-2016-0020
Arbitration Agreements; Proposed Rule

Dear Ms. Jackson:
The Human Rights Defense Center (HRDC) respectfully submits this comment on
Docket No. CFPB-2016-0020 regarding the issue of arbitration agreements as they relate to
prepaid accounts that consumers must establish to receive telephone calls from loved ones in
prison or jail, to place money on trust or commissary accounts used by prisoners to buy items
within the facility and to release debit cards issued to prisoners upon their release from custody.
In the latter regard, the balance on release debit cards is often the only money these individuals
have available once they are released, and they often have no other option but to accept the cards
in order to receive their funds.
The attached article details the experiences of two women who were given release debit
cards issued by Numi Financial in lieu of the cash in their possession at the time of arrest. In both
cases these cards, which carry a variety of fees and include arbitration clauses, were issued upon
the women’s release after they had been jailed for just hours. (Attachment 1 at 1-2)
While there are many predatory issues to be addressed with respect to release debit cards,
the issues germane to this proceeding are that although the consumer may be given a “densely
worded brochure explaining the terms and fees associated with the debit card,” one of the women
cited in the article did not have her glasses and the type was too small to read, and the second
woman was simply told “it works like a debit card.” Id. at 1-2. Neither was provided an option
to have her money returned in any form other than a release debit card. Further, given that they
were released at 2:30 a.m., and not having slept for 24 hours, they were not in a position to be
able to adequately inform themselves of the terms and conditions of Numi’s release debit card
and had no option other than accepting the card and its mandatory arbitration clause.
P.O. Box 1151
Lake Worth, FL 33460
Phone: 561-360-2523 Fax: 866-735-7136
pwright@prisonlegalnews.org

Page |2

Clearly, there was no agreement with respect to an arbitration clause in the issuance of
these release debit cards, which both contained mandatory arbitration agreements. There was no
meeting of the minds, these consumers never read the arbitration clause, and being handed a
brochure full of very small print as you are walking out of a jail before sunrise can hardly be
defined as adequate notice.
Consumers have no choice when release debit cards are literally foisted upon them by
armed police and jail or prison guards. There is no “opt in” whereby people willingly give up
their cash and choose to pay fees to access their own money on these debit cards. The companies
that are preying on the poorest and most vulnerable people in American society use mandatory
arbitration clauses in “agreements” where the consumers whose money is being taken from them
involuntarily have not, in fact, agreed to anything. It is merely a means and a vehicle to ensure
these companies cannot be held accountable by the courts, so they can continue to prey on the
weak and defenseless.
In the prison and jail context, mandatory arbitration clauses do nothing more than protect
corporations that prey on prisoners and their families who have no other market choice. JPay
offers money transfer services, which provide family members the ability to send money to
prisoners so they can make phone calls and purchase items from prison and jail commissaries.
Frequently, JPay is granted an exclusive contract with a correctional facility in exchange for
“commission” kickbacks, and families have few (or no) other options to send money to their
incarcerated loved ones. JPay’s mandatory arbitration clause is contained in Paragraph 14 of its
online Payment Terms and Service. Attachment 2 1
These families are in exactly the same position as prisoners being issued release debit
cards; they have no choice but to accept a condition that restricts their legal rights if they want to
send money to a loved one in prison or jail. The volume of money transferred and number of
consumers negatively affected by mandatory arbitration clauses is significant – in 2015 the
Florida Department of Corrections (FDOC) alone took in prisoner account deposits through JPay
totaling over $109 million. 2 JPay is the only option available for transferring funds to FDOC
prisoners, and is just one of several companies that offer money transfer services which force
consumers to accept mandatory arbitration clauses. Plus there are well over 3,100 jails in the
U.S. that accept and hold funds for prisoners, in addition to 50 state prison systems.
Arbitration clauses also appear in the terms and conditions that consumers must accept to
establish prepaid phone accounts to remain in contact with incarcerated loved ones. While the
terms and conditions that must be accepted to open a prepaid telephone account with Global
Tel*Link (GTL), the nation’s largest provider of prison phone services, purportedly allow
consumers to “opt out” of arbitration, they only permit actions to be brought on an individual
basis (i.e., no class actions). Attachment 3 at 1. This condition significantly limits the legal
rights of prisoners’ families by denying them the benefit of class-action representation. All
correctional facilities grant monopoly contracts to prison phone providers, so if families want to
talk with their incarcerated loved ones on the phone, they have no choice but to agree to the
arbitration clause, which is in the terms and conditions that few people actually read.

1
2

http://www.jpay.com/LegalAgreementsOut.aspx
http://www.dc.state.fl.us/pub/annual/1415/FDC_AR2014-15.pdf at 6

Page |3
There is no meaningful agreement or consent to arbitration agreements in the detention
facility context. All they do is immunize corporate predators from the legal consequences of their
unlawful actions, shield them from judicial review and preclude victimized consumers from
obtaining counsel and effective relief from our nation’s court system.
Regulation of mandatory arbitration clauses is both in the public interest and for the
benefit of consumers. While release debit cards are a relatively new product, the size of the
market and potential for growth is massive. Numi Financial is one of the top 10 providers of
prepaid cards nationwide, and issues more than 600,000 debit cards to consumers upon their
release from over 400 jails across the country. (Attachment 1 at 3). “The number of bookings
in jails in 2013, which approximates the number of releases and transfers, was 11.7 million.” Id.
at 4. Release debit cards are being foisted upon this very marginalized captive consumer group
when they are at their most vulnerable – when they are literally one step away from freedom and
have few other options to receive their account balances from prison or jail officials.
This reality, coupled with the facts that 1) “64% of jail inmates have a mental health
problem,” 3 many of whom may or may not be competent to understand what they are signing
and what an arbitration agreement is, and 2) a 2007 report by the National Center for Education
Statistics found that 39% of prisoners scored “below basic” for quantitative literacy testing while
another 39% scored at a “basic” level, 4 make mandatory arbitration agreements as they relate to
release debit cards an egregious, indefensible practice that must cease immediately. There are
also very high numbers of non-English speakers enmeshed in our nation’s criminal justice
system who have difficulty understanding the terms of mandatory arbitration agreements.
At the end of the day, the CFPB should hold that mandatory arbitration agreements
should be void or inapplicable in the criminal justice context whether applied to money transfer
services, phone services or release debit cards, for the simple reason that affected consumers
have no real choice in the matter. Absent free choice there can be no meeting of the minds or
agreement. Our free market system is predicated upon the notion that consumers have choice and
companies must earn their customers’ business. In the detention facility context, however, hedge
fund-owned corporations have learned that they only need to give kickbacks to the detention
agencies that hold prisoners captive to obtain exclusive, monopoly contracts and then force
prisoners’ families to pay whatever outrageous amounts they can charge for phone or money
transfer services, or to give people their own funds on debit cards. All because the affected
consumers, whose money is being taken and who are actually paying the bills, have no choice.
The CFPB should protect these captive consumers from mandatory arbitration agreements.
Thank you for your time and attention in this regard.
Sincerely,

Paul Wright
Executive Director, HRDC
Attachments

3

http://www.urban.org/sites/default/files/alfresco/publication-pdfs/2000173-The-Processing-and-Treatment-ofMentally-Ill-Persons-in-the-Criminal-Justice-System.pdf
4
http://nces.ed.gov/pubs2007/2007473.pdf

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As a condition to using JPay's payment services as described herein, you agree to this
Payments Terms of Service ("Agreement") and any future amendments.
1.    NOTICE  AND  CONSENT.  By  using  JPay's  services,  you  agree  to  the  terms  and
conditions  of  this  Agreement,  the  JPay  Privacy  Policy  and  any  other  documents
incorporated by reference. You further agree that this Agreement forms a legally binding
contract between you and JPay, and that this Agreement constitutes a writing signed by
you under any applicable law or regulation. Any rights not expressly granted herein are
reserved  by  JPay.  We  may  amend  this  Agreement  at  any  time  by  posting  a  revised
version on our website. The revised version will be effective at the time we post it. You
agree  to  be  bound  by  the  changed  terms  and  conditions  of  this  Agreement  as  of  the
effective date of such changes. We last modified this Agreement on March 10, 2016. In
this Agreement, "You", "User" or "Customer" means any person or entity using the JPay
Service (as defined below).
2.  THE JPAY SERVICE. A User may send money (the “Payment”) to an inmate’s account
at a JPay­affiliated correctional institution (a “Client”), to a JPay prepaid media account
(“JPay  Credits”)  or  to  a  prepaid  debit/phone  account.  A  Client  has  the  authority  to
review,  withhold  or  reject  a  Payment.  Payments  may  be  made  (1)  over  the  Internet  or
telephone  using  a  Visa  or  MasterCard  branded  credit  card  or  debit  card  (collectively
“Bank Card"), (2) at a partner location using cash (i.e., MoneyGram), (3) at a JPay kiosk
located  at  a  Client  using  cash  or  a  Bank  Card,  or  (4)  by  sending  a  money  order  to
JPay’s lockbox (collectively, the “JPay Service”). 
Depending  on  the  Client,  Payments  may  be  made  to  a  variety  of  inmate  accounts
including,  but  not  limited  to,  inmate  trust,  restitution,  temporary  leave  and  funeral
expenses.  In  addition,  each  Client  may  accept  Payments  through  select  JPay  Service
channels.  If  you  are  unsure  of  which  inmate's  account  to  send  a  Payment  or  which
JPay  Service  channels  are  available  to  you,  please  contact  JPay  or  the  Client.  JPay
will not be liable for a Payment sent to the incorrect inmate account.
3.  PAYMENT INFORMATION. To facilitate Payments, you will be required to provide JPay
with  certain  information  to  allow  us,  among  other  things:  to  verify  your  identity;  to
receive  appropriate  Bank  Card  authorization  if  applicable;  and  to  gather  any  other
information  a  Client  shall  require  of  you  to  send  the  Payment.  Please  refer  to  JPay's
Privacy  Policy  regarding  JPay's  use  of  this  information.  When  required  by  applicable
law, Payments will be reported to federal, state or local authorities.
4.  IDENTITY AUTHENTICATION. You authorize JPay, directly or through third parties, to
make  any  inquiries  we  consider  necessary  to  validate  your  identity.  This  may  include
asking you for further information, requiring you to provide your date of birth, and/or other
information  that  will  allow  us  to  reasonably  identify  you,  requiring  you  to  take  steps  to
confirm ownership of your email address, or verifying your Information against third party
databases  or  through  other  sources.  We  may  also  ask  to  see  your  driver's  license  or
other  identifying  documents  at  any  time.  JPay  reserves  the  right  to  close,  suspend,  or
limit  access  to  your  account  and/or  the  JPay  Service  in  the  event  we  are  unable  to
obtain or verify this Information.
5.  FEES. In consideration for the use of the JPay Service, you agree to pay JPay a fee for
each Payment sent by you at the applicable rate then in effect (the "Service Fee"). All
Service Fees are non­refundable.
6.  MONEY ORDERS. Where  the  lockbox  Payment  method  is  available  to  you,  JPay  will
only  accept  money  orders  valued  at  $1,000.00  or  less,  depending  on  the  Client.  Any
money orders over $1,000.00 will be returned to you. All approved money orders will be
processed within up to ten (10) business days following receipt by JPay. 
All  money  orders  must  be  made  payable  to  "JPay  Inc.".  A  deposit  slip  and  any
accompanying  information  required  by  the  Client  must  be  filled  out  and  submitted  with
every money order. Deposit slips can be found on JPay's Website All deposit slips must
be legible and completely filled out. Any materials sent with the money order other than
the deposit slip will be discarded.
7.  JPAY CREDITS. Depending on the Client, JPay Credits can be used by the inmate to
purchase  media  related  products.  JPay  Credits  are  non­transferrable  and  unused  JPay
Credits will not be refunded.
8.  PAYMENT. Service Fees and the principal Payment amount are due and payable before
JPay processes the Payment. By making a Payment with a Bank Card, you authorize
JPay  to  process  the  Payment.  When  using  a  Bank  Card,  if  JPay  does  not  receive
authorization  from  the  card  issuer,  the  Payment  will  not  be  processed  and  a  hold  may
be  placed  on  your  Bank  Card  which  can  only  be  removed  by  the  issuing  bank.  Each
time  you  use  the  JPay  Service,  you  agree  that  JPay  is  authorized  to  charge  your
designated Bank Card account for the principal Payment amount, the Service Fee, and
any other applicable fees.

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9.    OTHER  CHARGES.  JPay  is  not  responsible  for  any  fees  or  charges  that  may  be
imposed  by  the  financial  institutions  associated  with  your  Payment.  For  example
(without limitation), some credit card issuers may treat the use of your credit card to use
the  Service  as  a  "cash  advance"  rather  than  a  purchase  transaction,  and  may  impose
additional  fees  and  interest  rates  for  the  transaction.  JPay  is  not  responsible  for  any
non­sufficient  funds  charges,  chargeback  fees,  or  other  similar  charges  that  might  be
imposed on you by your bank, credit card issuer, or other provider.
10.  RECURRING PAYMENT. A recurring payment is a Payment in which you authorize 
JPay to charge your Bank Card on a regular or periodic basis (“Recurring Payment”).
This authorization is to remain in full force and effect until you cancel a Recurring
Payment. You may cancel a Recurring Payment at any time up to one (1) business day
prior to the date the Payment is scheduled to be processed. To cancel a Recurring
Payment, log into your account, access the “Money” tab, then access the “Recurring
Payments” tab and click “Delete.”
11.  REFUNDS. You may not cancel a Payment. Under some circumstances, a Payment
may not be completed or a Client may refuse to accept a Payment. In such cases,
JPay will cancel the Payment transaction and refund the principal Payment amount
less the Service Fee to the Customer.
12.  ESCHEATMENT  LAWS.  JPay  must  comply  with  each  state's  unclaimed  property
(escheatment) laws. If, for whatever reason, JPay is unable to transfer your Payment to
a Client, JPay will attempt to contact you to issue you a refund. If JPay cannot get in
contact  with  you  and  you  do  not  claim  your  Payment  within  the  statutory  time  period,
JPay  may  be  required  to  escheat  the  Payment  to  your  resident  state.  JPay  will
determine your state of residency based on the information provided by you at the time
of Payment. If you do not claim an unpaid Payment within one (1) month after the date
you  made  the  Payment,  where  permitted  by  law,  JPay  shall  hold  the  Payment  in  an
account and impose a $3.00 service fee per month until such time the unpaid Payment
must be escheated to the state.
13.  GOVERNING  LAW.  This  Agreement  and  the  rights  of  the  parties  hereunder  shall  be
governed  by  and  construed  in  accordance  with  the  laws  of  the  State  of  Florida,
exclusive of conflict or choice of law rules.
14. DISPUTE RESOLUTION.
  a)  Any  dispute,  claim  or  controversy  among  the  parties  arising  out  of  or  relating  to
this  Agreement  ("Dispute")  shall  be  finally  resolved  by  and  through  binding
arbitration  administered  by  JAMS  pursuant  to  its  Comprehensive  Arbitration
Rules and Procedures and in accordance with the Expedited Procedures in those
Rules (the "JAMS Rules"), provided that failure to adhere to any of the time limits
set forth therein shall not be a basis for challenging the award. Both the foregoing
agreement  of  the  parties  to  arbitrate  any  and  all  Disputes,  and  the  results,
determinations,  findings,  judgments  and/or  awards  rendered  through  any  such
arbitration,  shall  be  final  and  binding  on  the  parties  and  may  be  specifically
enforced by legal proceedings in any court of competent jurisdiction.
 b) The arbitration shall be conducted by three arbitrators. Each party shall select one
arbitrator within 30 days of commencement of the arbitration, failing which, upon
request of any party, JAMS shall appoint such arbitrator. The third arbitrator, who
shall  serve  as  Chairperson  of  the  arbitral  panel,  shall  be  appointed  by  JAMS
pursuant to Rule 15 of the JAMS Rules. The arbitrators must apply the terms of
this  arbitration  agreement,  including  without  limitation,  the  waiver  of  class­wide
arbitration set forth below.
 c) The place of arbitration shall be Miami, Florida.
  d)  The  cost  of  the  arbitration  proceeding,  including,  without  limitation,  each  party's
attorneys'  fees  and  costs,  shall  be  borne  by  the  unsuccessful  party  or,  at  the
discretion  of  the  arbitrators,  may  be  prorated  between  the  parties  in  such
proportion  as  the  arbitrators  determine  to  be  equitable  and  shall  be  awarded  as
part of the award.
  e)  The  arbitration  provisions  set  forth  herein,  and  any  arbitration  conducted
thereunder,  shall  be  governed  exclusively  by  the  Federal  Arbitration  Act,  Title  9
United States Code, to the exclusion of any state or municipal law of arbitration.
  f) RESTRICTIONS ON ARBITRATION: ALL DISPUTES, REGARDLESS OF THE
DATE  OF  ACCRUAL  OF  SUCH  DISPUTE,  SHALL  BE  ARBITRATED  ON  AN
INDIVIDUAL BASIS. YOU ARE WAIVING YOUR RIGHT TO PARTICIPATE IN
A  CLASS  ACTION  LAWSUIT,  AND  TO  CERTAIN  DISCOVERY  AND  OTHER
PROCEDURES  THAT  ARE  AVAILABLE  IN  A  LAWSUIT.  YOU  AND  JPAY
AGREE  THAT  THE  ARBITRATORS  HAVE  NO  AUTHORITY  TO  ORDER
CONSOLIDATION  OR  CLASS  ARBITRATION  OR  TO  CONDUCT  CLASS­
WIDE  ARBITRATION  PROCEEDINGS,  AND  ARE  ONLY  AUTHORIZED  TO
RESOLVE THE INDIVIDUAL DISPUTES BETWEEN YOU AND JPAY ALONE.
FURTHER,  YOU  WILL  NOT  HAVE  THE  RIGHT  TO  CONSOLIDATION  OR
JOINDER  OF  INDIVIDUAL  DISPUTES  OR  ARBITRATIONS,  TO  HAVE  ANY
DISPUTE ARBITRATED ON A CLASS ACTION BASIS, OR TO PARTICIPATE
IN  A  REPRESENTATIVE  CAPACITY  OR  AS  A  MEMBER  OF  ANY  CLASS
PERTAINING TO ANY CLAIM SUBJECT TO ARBITRATION.
  g)  THE  VALIDITY,  EFFECT,  AND  ENFORCEABILITY  OF  THE  FOREGOING
WAIVER  OF  CLASS  ACTION  LAWSUIT  AND  CLASS­WIDE  ARBITRATION,
IF  CHALLENGED,  ARE  TO  BE  DETERMINED  SOLEY  AND  EXCLUSIVELY
BY  FEDERAL  DISTRICT  COURT  LOCATED  IN  THE  SOUTHERN  DISTRICT
OF  FLORIDA  OR  FLORIDA  STATE  COURT  IN  MIAMI­DADE  COUNTY  AND
NOT BY JAMS OR ANY ARBITRATOR.
  h)  WITHOUT  WAIVING  THE  RIGHT  TO  APPEAL  SUCH  DECISION,  SHOULD
ANY PORTION OF SECTION 14(F) BE STRICKEN FROM THIS AGREEMENT
OR  DEEMED  OTHERWISE  INVALID  OR  UNENFORCEABLE,  THEN  THIS
ENTIRE  SECTION  14  (OTHER  THAN  THIS  SENTENCE)  SHALL  BE

STRICKEN FROM THIS AGREEMENT AND INAPPLICABLE, AND ANY AND
ALL  DISPUTES  SHALL  PROCEED  IN  FEDERAL  DISTRICT  COURT
LOCATED IN THE SOUTHERN DISTRICT OF FLORIDA OR FLORIDA STATE
COURT  IN  MIAMI­DADE  COUNTY  AND  BE  DECIDED  BY  A  JUDGE,
SITTING WITHOUT A JURY, ACCORDING TO APPLICABLE COURT RULES
AND PROCEDURES, AND NOT AS A CLASS ACTION LAWSUIT.
15.  INDEMNIFICATION. Except to the extent that JPay is otherwise liable under this
Agreement or by law, you agree to indemnify and hold JPay, its shareholders,
subsidiaries, affiliates, directors, officers, employees, agents, representatives,
suppliers, service providers, and subcontractors harmless from any and all losses,
liabilities, claims, demands, judgments and expenses, including but not limited to
reasonable attorney's fees, arising out of or in any way connected with your use of or
the performance of the JPay Service.
16.  DISCLAIMER  OF  WARRANTIES  AND  LIMITATION  OF  LIABILITY.  THE  JPAY

SERVICE  IS  PROVIDED  BY  JPAY  INC.  ON  AN  "AS  IS"  AND  "AS
AVAILABLE"  BASIS.  JPAY  MAKES  NO  REPRESENTATIONS  OR
WARRANTIES  OF  ANY  KIND,  EXPRESS  OR  IMPLIED,  AS  TO  THE
OPERATION OF THE JPAY SERVICE OR THE INFORMATION, CONTENT,
MATERIALS, PRODUCTS OR SERVICES INCLUDED ON THIS SITE. YOU
EXPRESSLY  AGREE  THAT  YOUR  USE  OF  THE  JPAY  SERVICE  IS  AT
YOUR SOLE RISK AND THAT YOU ARE SOLELY RESPONSIBLE FOR THE
ACCURACY  OF  THE  PERSONAL  AND  PAYMENT  INFORMATION  THAT
YOU PROVIDE. 
TO  THE  FULL  EXTENT  PERMISSIBLE  BY  APPLICABLE  LAW,  JPAY
DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT
NOT  LIMITED  TO,  IMPLIED  WARRANTIES  OF  MERCHANTABILITY  AND
FITNESS  FOR  A  PARTICULAR  PURPOSE.  JPAY  DOES  NOT  WARRANT
THAT THIS SITE, ITS SERVICES OR E­MAIL SENT FROM JPAY ARE FREE
OF  VIRUSES  OR  OTHER  HARMFUL  COMPONENTS.  JPAY  (AS  WELL  AS
ITS  OFFICERS,  DIRECTORS,  EMPLOYEES,  AFFILIATES  AND
STOCKHOLDERS)  WILL  NOT  BE  LIABLE  FOR  ANY  DAMAGES  OF  ANY
KIND  ARISING  FROM  THE  USE  OF  THIS  SITE,  ANY  CREDIT  CARD
COMPANY'S  NON­AUTHORIZATION  OF  A  USER'S  BANK  CARD
PAYMENT,  ANY  GOVERNMENT  ENTITY'S  NON­ACCEPTANCE  OF  A
PAYMENT  FROM  A  USER  USING  THE  JPAY  SERVICE,  FOR
DISRUPTIONS IN THE JPAY SERVICE, OR FOR ERROR, DELAY OR MIS­
DELIVERY  OF  A  PAYMENT,  REGARDLESS  OF  THE  CAUSE,  INCLUDING
(WITHOUT LIMITATION) DIRECT, INDIRECT, INCIDENTAL, PUNITIVE AND
CONSEQUENTIAL DAMAGES. 
CERTAIN  STATE  LAWS  DO  NOT  ALLOW  LIMITATIONS  ON  IMPLIED
WARRANTIES  OR  THE  EXCLUSION  OR  LIMITATION  OF  CERTAIN
DAMAGES.  IF  THESE  LAWS  APPLY  TO  YOU,  SOME  OR  ALL  OF  THE
ABOVE  DISCLAIMERS,  EXCLUSIONS  OR  LIMITATIONS  MAY  NOT  APPLY
TO YOU, AND YOU MIGHT HAVE ADDITIONAL RIGHTS.

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Attachment 3

Terms of use
Effective Date: March 30, 2015
TouchPay Holdings, LLC d/b/a GTL Financial Services, a wholly-owned subsidiary of Global Tel*Link Corporation, is
the owner and operator of the website located at the url www.connectnetwork.com (the “Site”). These Terms of Use
apply when you access, visit or use the Site or use any of the products or services that Global Tel*Link Corporation
(“GTL”), or one of its affiliates (individually “Affiliate” and collectively “Affiliates”) provide, including My Phone Account,
Offender Trust Fund, Send An Email and Offender Phone Account (the Site and these products and services will be
referred to in these Terms of Use as the “Service”). For purposes of these Terms of Use, “Company”, “we”, “us”, or
“our”, means GTL, and any Affiliate where the Affiliate or its products or services are implicated.
Notice Regarding Dispute Resolution: These Terms of Use contain provisions that govern how claims you
and we may have against each other are resolved (see Section R below), including an agreement and
obligation to arbitrate disputes, which will, subject to limited exceptions, require you to submit claims you
have against us to binding arbitration, unless you opt-out in accordance with Section R(4). Unless you optout of arbitration: (1) you will only be permitted to pursue claims against us on an individual basis, not as
part of any class or representative action or proceeding and (2) you will only be permitted to seek relief
(including monetary, injunctive, and declaratory relief) on an individual basis.
A. Acceptance of these Terms of Use by Users of the Site. By using the Service, or clicking the “accept” button
when you register to use the Service through the Site or when you are otherwise prompted to do so, you agree to be
bound by the terms of these Terms of Use.
B. Acceptance of these Terms of Use by Other Users of the Service. If you create an account to use the Service
other than through the Site, and if you do not agree with or consent to the terms of these Terms of Use, you will have
thirty (30) days from the date you create the account with us to cancel the account. If you decide that you want to
cancel the account within this thirty (30) day period, please contact our Customer Service team using the information
supplied through the “Contact Us” link on the Site. If you cancel the account we will provide you with a refund of any
fees you have paid and not used in connection with the Service.
C. Eligibility. The Service is intended for individuals who are at least eighteen (18) years old. If you are not at least
eighteen (18) years old, please do not access, visit or use the Service.
D. Your Privacy Rights. In connection with your use of the Service, please review the Your Privacy Rights statement
(“Privacy Statement”) in order to understand how we use information we collect from you when you access, visit or
use the Service. The Privacy Statement is part of and is governed by these Terms of Use and by accepting the
Terms of Use, you agree to be bound by the terms of the Privacy Statement, and agree that we may use information
collected from you in accordance with the Privacy Statement.
E. Registration. As a condition of using certain features of the Service, you may be required to register through the
Site and select a password and user I.D. You may not: (1) select or use as a user I.D. a name of another person with
the intent to impersonate that person; (2) use as a user I.D. a name subject to any rights of a person other than you
without appropriate authorization; or (3) use as a user I.D. a name that is otherwise offensive, vulgar or obscene. We
reserve the right to refuse registration of, or to cancel a user I.D., in our sole discretion. You shall be responsible for
maintaining the confidentiality of your user I.D. and password.
F. Prohibited Activities. You may not access or use the Service for any purpose other than the purpose for which
we make it available to you. We may prohibit certain activities in connection with the Service in our discretion. These
prohibited activities include, without limitation, the following:

1.

Criminal or tortious activity, including child pornography, fraud, trafficking in obscene material, drug dealing,
gambling, harassment, stalking, spamming, copyright infringement, patent infringement, or theft of trade
secrets.
2. Advertising to, or solicitation of, any user to buy or sell any products or services.
3. Transmitting chain letters or junk email to other users.
4. Using any information obtained from the Service in order to contact, advertise to, solicit or sell any products
or services to any user without their prior explicit consent.
5. Engaging in any automated use of the Service, such as using scripts to send comments or messages.
6. Interfering with, disrupting or creating an undue burden on the Service or the networks or services
connected to the Service.
7. Attempting to impersonate another user or person.
8. Using the user I.D. or account of another user.
9. Using any information obtained from the Service in order to harass, abuse or harm another person.
10. Accepting payment of anything of value from a third person in exchange for your performance of any
commercial activity on or through the Service on behalf of that person.
11. Using the Service in a manner inconsistent with any and all applicable laws and regulations.
G. Management of the Service. You acknowledge that we reserve the right, but have no obligation, to (1) take
appropriate legal action against anyone who, in our sole determination, violates these Terms of Use, including,
without limitation, reporting you to law enforcement authorities, (2) in our sole discretion and without limitation, refuse,
restrict access to or availability of, or disable all or a portion of the Service, and (3) otherwise manage the Service in a
manner designed to protect the rights and property of the Company and users of the Service and to facilitate the
proper functioning of the Service.
H. Monitoring of Calls Made and Video Visits Made and Email Sent through the Service. You acknowledge and
agree that we may, and the correctional facility where an offender is incarcerated may, monitor or record calls and
video visits as well as obtain the location of your phone when you use the Service, and read emails sent using the
Service, in accordance with the policies in place at the correctional facility where an offender is incarcerated. By
accepting these Terms of Use you authorize us, and the applicable correctional facility, to monitor and record calls
and video visits you make through the Service and to read emails you send through the Service in accordance with
the policies in place at the applicable correctional facility.
I. Use of the Service. The Service and its contents and the trademarks, service marks and logos contained on the
Service, are the intellectual property of the Company or its licensors and constitute copyrights and other intellectual
property rights of the Company or its licensors under U.S. and foreign laws and international conventions. The
Service and its contents are provided for your informational, personal, non-commercial use only and may not be
used, copied, reproduced, distributed, transmitted, broadcast, displayed, sold, licensed, or otherwise exploited for any
other purpose whatsoever without the express written consent of the Company. You agree not to engage in the use,
copying or distribution of the Service or of any of its contents for any commercial purpose. You agree not to
circumvent, disable or otherwise interfere with security related features of the Service. We may, but are not obligated
to, periodically provide updates to the Service to resolve bugs or add features and functionality. You do not acquire
any ownership rights to the Service or to any contents contained on the Service. All rights not expressly granted in
these Terms of Use are reserved by the Company. You are solely responsible for your interactions with other users of
the Service.
J. Termination of Your Use of the Service. We may suspend or terminate your use of the Service if you violate
these Terms of Use or in our discretion. We may also impose limits on or restrict your access to parts or all of the
Service without notice or liability.
K. Charges for the Service. Fees will apply to your use of certain features of the Service, including any calls
that are made through the Service. The fees and charges may vary based on, among other things, the correctional

facility where an offender is incarcerated. We reserve the right to change the fees charged periodically, in our
discretion.
L. Submissions. If you submit opinions, suggestions, feedback, images, documents, and/or proposals to us through
the Service, or through any other communication with us, you acknowledge and agree that: (1) the submissions you
provide will not contain confidential or proprietary information; (2) we are not under any obligation of confidentiality,
express or implied, with respect to the submissions you provide; (3) we shall be entitled to use or disclose (or choose
not to use or disclose) the submissions you provide for any purpose, in any way, in any media worldwide; (4) the
submissions you provide will automatically become the property of the Company without any obligation of the
Company to you; and (5) you are not entitled to any compensation or reimbursement of any kind from the Company
in connection with your submissions under any circumstances.
M. Links to Other Websites. The Service may contain links to third-party websites, resources or data. You
acknowledge and agree that the Company is not responsible or liable for: (1) the availability or accuracy of these
third-party websites, resources or data; or (2) the content, products, or services on or available from these websites,
resources or data. You also acknowledge that you are solely responsible for, and assume all risk arising from, the
use of any these websites, resources and data. Links to third party websites on the Service are not intended as
endorsements or referrals by the Company of any products, services or information contained on the applicable
websites. These Terms of Use do not apply to third party websites, including the content of and your activity on those
websites. You should review third-party websites’ terms of service, privacy policies and all other website documents,
and inform yourself of the regulations, policies and practices of third-party websites.
N. Disclaimer of Warranties. THE INFORMATION CONTAINED IN AND PROVIDED THROUGH THE SERVICE,
INCLUDING TEXT, GRAPHICS, LINKS, OR OTHER ITEMS, IS PROVIDED "AS IS". NEITHER THE COMPANY
NOR ITS SUPPLIERS WARRANT THE ACCURACY, ADEQUACY, COMPLETENESS OR TIMELINESS OF THE
INFORMATION, MATERIALS, PRODUCTS, AND SERVICES ACCESSED ON OR THROUGH THE SERVICE AND
THE COMPANY EXPRESSLY DISCLAIMS LIABILITY FOR ERRORS OR OMISSIONS IN THE INFORMATION OR
MATERIALS ACCESSED ON OR THROUGH THE SERVICE. NO WARRANTY OF ANY KIND, WHETHER IMPLIED
OR EXPRESSED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF NON-INFRINGEMENT, TITLE,
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND FREEDOM FROM COMPUTER VIRUS, IS
GIVEN IN CONJUNCTION WITH ANY INFORMATION, MATERIALS, OR SERVICES PROVIDED THROUGH THE
SERVICE.
O. Limitation of Liability. IN NO EVENT SHALL THE COMPANY OR ITS THIRD PARTY SUPPLIERS BE LIABLE
FOR ANY DAMAGES, LOSSES OR LIABILITIES INCLUDING, WITHOUT LIMITATION, DIRECT OR INDIRECT,
PUNITIVE, INCIDENTAL, SPECIAL, CONSEQUENTIAL OR OTHER DAMAGES, LOSSES OR EXPENSES,
INCLUDING ANY LOST PROFITS, LOST DATA, OR LOST SAVINGS, WHETHER BASED ON BREACH OF
CONTRACT, BREACH OF WARRANTY, TORT OR ANY OTHER LEGAL THEORY, ARISING OUT OF OR IN ANY
WAY CONNECTED WITH THE USE OF THE SERVICE OR RELIANCE ON OR USE OR INABILITY TO USE THE
INFORMATION, MATERIALS OR SERVICES PROVIDED THROUGH THE SERVICE, OR IN CONNECTION WITH
ANY FAILURE OF PERFORMANCE, ERROR, OMISSION, INTERRUPTION, DEFECT, DELAY IN OPERATION OR
TRANSMISSION, COMPUTER VIRUS OR LINE OR SYSTEM FAILURE, EVEN IF THE COMPANY OR ITS THIRD
PARTY SUPPLIERS ARE ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, LOSSES OR EXPENSES.
P. Unauthorized Transactions. In the event that you use a credit card to pay for any products or services offered
through the Site, you are representing to the Company that you are authorized to use that credit card.
Q. Indemnification. You agree to defend, indemnify and hold the Company harmless from and against any and all
claims, damages, and costs including attorneys’ fees, arising from or related to your use of the Service.
R. Dispute Resolution.

1.

Arbitration. The parties shall use their best efforts to settle any dispute, claim, question, or disagreement
directly through consultation and good faith negotiations which shall be a precondition to either party
initiating a lawsuit or arbitration. All claims arising out of or relating to these Terms of Use (including its
formation, performance and breach) and the Service shall be finally settled by binding arbitration, excluding
any rules or procedures governing or permitting class actions. The arbitrator, and not any federal, state or
local court or agency, shall have exclusive authority to resolve all disputes arising out of or relating to the
interpretation, applicability, enforceability or formation of these Terms of Use, including, but not limited to
any claim that all or any part of these Terms of Use is void or voidable. The arbitrator shall be empowered to
grant whatever relief would be available in a court under law or in equity. The arbitrator’s award shall be
binding on the parties and may be entered as a judgment in any court of competent jurisdiction. To the
extent the filing fee for the arbitration exceeds the cost of filing a lawsuit, we will pay the additional cost. The
interpretation and enforcement of these Terms of Use shall be subject to the Federal Arbitration Act.
The parties understand that, absent this mandatory provision, they would have the right to sue in
court and have a jury trial. They further understand that, in some instances, the costs of arbitration
could exceed the costs of litigation and the right to discovery may be more limited in arbitration than
in court.

2.

Class Action Waiver.The parties further agree that any arbitration shall be conducted in their individual
capacities only and not as a class action or other representative action, and the parties expressly waive their
right to file a class action or seek relief on a class basis. If any court or arbitrator determines that the class
action waiver set forth in this paragraph is void or unenforceable for any reason or that an arbitration can
proceed on a class basis, then the arbitration provision set forth above shall be deemed null and void in its
entirety and the parties shall be deemed to have not agreed to arbitrate disputes.

3.

Exception - Litigation of Small Claims Court ClaimsNotwithstanding the parties’ decision to resolve all
disputes through arbitration, either party may also seek relief in a small claims court for disputes or claims
within the scope of that court’s jurisdiction.

4.

Thirty Day Right to Opt Out. You have the right to opt-out and not be bound by the arbitration and class
action waiver provisions set forth this Section by sending written notice of your decision to opt-out to the
following address: c/o Global Tel*Link Corporation, 12021 Sunset Hills Road, Reston, Virginia 20190, Attn:
Arbitration Opt-Out. The notice must be sent within thirty (30) days of the date you have agreed to Terms of
Use; otherwise you shall be bound to arbitrate disputes in accordance with the terms set forth above. If you
elect to opt-out of these arbitration provisions, we also will not be bound by them. In addition, if you elect to
opt-out of these arbitration provisions, we may terminate your use of the Service. If we terminate your use of
the Service, we will provide you with a refund of any fees you have paid and have not been used in
connection with the Service.

S. Amendments. These Terms of Use may be amended by the Company from time to time. We will post any
material changes to these Terms of Use on the Site with a notice advising of changes. You may cancel your account
within thirty (30) days following the date the amended Terms of Use are posted by contacting us using the contact
information in Section Z below. If you choose to cancel your account within this thirty (30) day period, you will not be
bound by the terms of the revised Terms of Use but will remain bound by terms of these Terms of Use, and, we will
provide you with a refund of any fees that you have paid and that have not been used in connection with the Service.
T. No Oral Modifications. Employees of the Company are not authorized to modify these Terms of Use, either
verbally or in writing. If any employee of the Company offers to modify these Terms of Use, he or she is not acting as
an agent for the Company or speaking on our behalf. You may not rely, and should not act in reliance on, any
statement or communication from an employee of the Company or anyone else purporting to act on our behalf.
U. No Third Party Beneficiaries. These Terms of Use are between you and the Company. There are no third party
beneficiaries.

V. Independent Contractors. No agency, partnership, joint venture, or employment is created as a result of these
Terms of Use and you do not have any authority of any kind to bind the Company in any respect whatsoever. W.
Non-Waiver. The failure of either party to exercise in any respect any right provided for herein shall not be deemed a
waiver of any further rights hereunder.
X. Force Majeure. The Company shall not be liable for any failure to perform its obligations hereunder where the
failure results from any cause beyond the Company’s reasonable control, including, without limitation, any
mechanical, electronic or communications failure or degradation.
Y. Severability. If any provision of these Terms of Use is found to be unenforceable or invalid (other than the class
action waiver in Section R), that provision shall be limited or eliminated to the minimum extent necessary so that
these Terms of Use shall otherwise remain in full force and effect and enforceable.
Z. Contact Us. f you have any questions about these Terms of Use, you may contact us by email at
termsofuse@gtl.net or by postal mail at c/o Global Tel*Link Corporation, 12021 Sunset Hills Road, Suite 100, Reston,
Virginia 20190, Attn: Legal Department. If you have any questions regarding the Service or your account, or if you
would like to cancel your account, please contact our Customer Service team using the information supplied through
the “Contact Us” link on the Site.
Assignment.These Terms of Use are not assignable, transferable or sublicensable by you except with our prior
written consent. We may transfer, assign or delegate these Terms of Use and our related rights and obligations
without obtaining your consent.

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About ConnectNetwork
Consumer Disclosures
Terms of Use
Privacy Policy

© Deposits to an inmate's trust account, as well as probation, community corrections, and background check
payments are provided by TouchPay Holdings, LLC d/b/a GTL Financial Services, which is also the owner and
manager of this website. TouchPay Holdings, LLC d/b/a GTL Financial Services is wholly owned by GTL
Corporation. All transactions conducted at ConnectNetwork.com to make prepaid collect deposits, PIN debit
deposits and Debit Link deposits are provided by GTL Enhanced Services LLC, which i