I often mention magicJack as an inexpensive substitute or supplement to your landline telephone service. This small device plugs into the USB port on your computer. You plug a phone line into the other end. It uses your broadband Internet connection to make and receive phone calls – to and from regular telephones – on your magicJack phone number. You get unlimited long-distance calls, free voicemail, call-waiting, etc.

The magic is the price. It costs $20 for the device and $20 for a whole year’s service. It even comes with a 30-day money-back guarantee.

And that’s where the news comes.

Florida Attorney General Bill McCollum said last week that a settlement was reached with West Palm Beach-based Magic Jack over allegations the company marketed a free 30-day trial for its long distance phone equipment, but actually charged and debited customers before the trial expired. The company agreed to reimburse the state $125,000 for its investigation costs and resolve more than 500 customer complaints. Borislow claims the company authorized charges on credit and debit cards used for magicJack purchases, but never charged the cards until the 30-day trial was up. That’s also something he told me in a phone interview several months ago.

Another common complaint with magicJack is that people who can’t get the device working do not receive adequate help from the company’s technical support department. In sum, magicJack seems to be one of those products better suited to the tech-savvy who can troubleshoot problems themselves (although company President Dan Borislow tells me senior citizens, who tend to be less tech-savvy, are among his biggest customers.)

This is a polarizing product. It seems like it either works great or doesn’t work at all. Internet message board, including comments on my blog, show people either love or hate magicJack.

My advice? If you want to try magicJack, buy it at a retail store, such as Radio Shack or Best Buy, which will take back the product and issue you a refund if it does not work. But for $40 for a year’s worth of phone service, it could be worth a try. Just don’t cancel your landline until you are certain it works for you.