UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                    FORM 8-K

                             CURRENT REPORT PURSUANT
                          TO SECTION 13 OR 15(D) OF THE
                         SECURITIES EXCHANGE ACT OF 1934


Date of report (Date of earliest event reported):  October 2, 2006
                                               ---------------------------------


                          Pre-Paid Legal Services, Inc.
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             (Exact Name of Registrant as Specified in Its Charter)


                                    Oklahoma
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                 (State or Other Jurisdiction of Incorporation)


            001-09293                              73-1016728
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    (Commission File Number)           (IRS Employer Identification No.)


         One Pre-Paid Way
             Ada, OK                                  74820
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(Address of Principal Executive Offices)            (Zip Code)


                                 (580) 436-1234
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              (Registrant's Telephone Number, Including Area Code)


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          (Former Name or Former Address, if Changed Since Last Report)


     Check the  appropriate  box below if the Form 8-K  filing  is  intended  to
simultaneously  satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):

     |_| Written  communications  pursuant to Rule 425 under the  Securities Act
(17 CFR 230.425)

     |_| Soliciting  material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)

     |_|  Pre-commencement  communications  pursuant to Rule 14d-2(b)  under the
Exchange Act (17 CFR 240.14d-2(b))

     |_|  Pre-commencement  communications  pursuant to Rule 13e-4(c)  under the
Exchange Act (17 CFR 240.13e-4(c))






Item 2.02 Results of Operations and Financial Condition
-------------------------------------------------------

     On October 2, 2006, Pre-Paid Legal Services,  Inc. (the "Company") issued a
press release  announcing its membership  production and recruiting  information
for the three months ended September 30, 2006. A copy of the release is included
as an exhibit to this report.


Item 9.01 Financial Statements and Exhibits
-------------------------------------------

         The following exhibits are included with this report:

   Exhibit No.                 Description
   -----------                 -----------

       99.1         Company Press Release dated October 2, 2006


                                   SIGNATURES

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

                                   Pre-Paid Legal Services, Inc.


                                   By: /s/ Randy Harp
                                       ---------------------------------------
                                       Randy Harp, Chief Operating Officer

Date:  October 2, 2006




For Immediate Release                              Company    Steve Williamson
Monday, October 2, 2006                            Contact:      (580) 436-1234

      PRE-PAID ANNOUNCES 2006 3rd QUARTER MEMBERSHIP AND RECRUITING RESULTS

     ADA, OK,  October 2, 2006 - Pre-Paid  Legal  Services,  Inc.  (NYSE:  PPD),
reported new memberships produced and new sales associates enrolled for the 2006
third  quarter.  During the 3rd quarter of 2006, new sales  associates  enrolled
decreased  37% compared to the third quarter of 2005.  Memberships  produced and
new  membership  fees  written  decreased  14% and our  active  membership  base
decreased slightly by 2,535 memberships compared to the comparable period of the
previous year.


     On a sequential  quarterly basis, new associates enrolled decreased 7%, new
memberships  produced increased 2%, new membership fees written increased 4% and
our active membership base increased slightly by 3,607 memberships.



------------------------------------------------------------------------------- -----------------------------------------
                                                                                           Three Months Ended
New Memberships:                                                                 9/30/2006     6/30/2006     9/30/2005
----------------                                                                -----------   ----------    -----------
                                                                                                       
New legal service membership sales..........................................        148,311       146,043       171,281
New "stand-alone" IDT membership sales......................................          7,047         6,461         8,583
                                                                                -----------   -----------   ------------
         Total new membership sales.........................................        155,358       152,504       179,864
                                                                                -----------   -----------   ------------
New "add-on" IDT membership sales...........................................        102,341        98,156       118,556

Average Annual Membership fee...............................................        $334.70       $327.34       $335.67
Active Memberships:
Active legal service memberships at end of period...........................      1,484,456     1,484,498     1,502,022
Active "stand-alone" IDT memberships at end of period (see note below)......         60,816        57,167        45,785
                                                                                -----------   -----------   ------------
         Total active memberships at end of period..........................      1,545,272     1,541,665     1,547,807
                                                                                -----------   -----------   ------------

Active "add-on" IDT memberships at end of period (see note below)...........        529,983       507,049       439,962

New Sales Associates:
New sales associates recruited..............................................         42,395        45,517        67,321

Average enrollment fee paid by new sales associates.........................         $49.74        $49.70        $50.12

Average Membership fee in force:
Average Annual Membership fee...............................................        $292.60       $291.22       $285.18

Note - reflects 6,775 net transfers from "add-on" status to "stand-alone" status during the quarter
-------------------------------------------------------------------------------------------------------------------------


     Our total active membership fees in force increased approximately 2% during
the last year and continues our  annualized  trend of increasing  our membership
fees in force. Membership persistency rate (defined as the number of memberships
in  force  at the end of a 12  month  period  as a  percentage  of the  total of
memberships in force at the beginning of such period,  plus new memberships sold
during such period) was 70.9% for the 12 month period ended September 30, 2006.

     Our third  quarter  2006  corporate  finance  focus has again been on share
repurchases.  During the 3rd quarter,  we returned $10.6 million to shareholders
through the  repurchase  of 294,341  shares of common  stock,  at an average per
share price of $35.94.  Since April 1999,  we have  returned  $270.7  million to
shareholders  through the  purchase of 10.8  million  shares,  average  price of
$25.11 per share,  and $17.1 million in dividends for a combined total of $287.8
million  representing  more than 110 percent of our net earnings during the same
timeframe.

     We  anticipate  announcing  our 2006  third  quarter  financial  results on
October  23,  2006 after the  market  closes and  hosting a  conference  call to
discuss such results on October 25, 2006.

About Us - We believe our products are one of a kind,  life events legal service
plans. Our plans provide for legal service  benefits  provided through a network
of  independent  law firms  across the U.S.  and Canada,  and include  unlimited
attorney  consultation as well as will preparation,  traffic violation  defense,
automobile-related   criminal   charges   defense,   letter  writing,   document
preparation and review and a general trial defense benefit.  We have an identity
theft  restoration  product  we  think  is  also  one of a kind  because  of the
combination  of outside  vendors and our  provider law firms.  More  information
about   us   and   our    products   can   be   found   at   our   homepage   at
http://www.prepaidlegal.com.

     Forward-Looking Statements
     Statements in this press release, other than purely historical information,
regarding  our future  plans and  objectives  and  expected  operating  results,
dividends and share  repurchases  and statements of the  assumptions  underlying
such statements,  constitute  forward-looking  statements  within the meaning of
Section  21E  of  the  Securities  Exchange  Act of  1934.  The  forward-looking
statements  contained  herein are based on certain  assumptions  that may not be
correct.  They are subject to risks and  uncertainties  incident to our business
that could cause actual results to differ materially from those described in the
forward-looking  statements.  These risks and uncertainties are described in the
reports and statements filed by us with the Securities and Exchange  Commission,
including  (among others) those listed in our Form 10-K, Form 10-Q and Form 8-K,
and  include  the risks that our  membership  persistency  or renewal  rates may
decline,  that we may  not be able to  continue  to  grow  our  memberships  and
earnings,  that we are dependent on the continued  active  participation  of our
principal  executive  officer,  that  pending  or future  litigation  may have a
material  adverse  effect on us if resolved  unfavorably to us, that we could be
adversely affected by regulatory developments,  that competition could adversely
affect us, that we are substantially  dependent on our marketing force, that our
stock  price may be  affected  by short  sellers,  that we have  been  unable to
increase  our employee  group  membership  sales and that our active  premium in
force is not  indicative  of future  revenue  as a result of  changes  in active
memberships from cancellations and additional  membership sales. Please refer to
pages 14 and 15 of our 2005 Form 10-K and pages 7 through 9 of our June 30, 2006
Form 10-Q for a more complete  description of these risks.  We undertake no duty
to update any of the forward-looking statements in this release.

                                       ###