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):  January 3, 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 January 3, 2006, Pre-Paid Legal Services,  Inc. (the "Company") issued a
press release  announcing its membership  production and recruiting  information
for the three months and year ended  December 31, 2005. 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 January 3, 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:  January 4, 2006





For Immediate Release                              Company    Steve Williamson
Tuesday, January 3, 2006                           Contact:      (580) 436-1234

                 PRE-PAID ANNOUNCES 2005 4th QUARTER & YEAR-END
                        MEMBERSHIP AND RECRUITING RESULTS

                     2005 Sales Associates Recruited Up 125%
          2005 New Memberships Written Up 12%; Active Memberships Up 6%

     ADA, OK,  January 3, 2006 - Pre-Paid  Legal  Services,  Inc.  (NYSE:  PPD),
reported  new  memberships  produced and new sales  associates  enrolled for the
fourth quarter and for the year ended December 31, 2005.  During the 4th quarter
of 2005, new sales associates  enrolled  increased 25% to 52,168 from the 41,829
enrolled  in the 4th  quarter  of 2004  and new  memberships  produced  remained
relatively  constant at 157,194 during the 2005 quarter  compared to 156,896 for
the 2004 quarter.

     For the year 2005, new sales associates  enrolled increased 125% to 242,223
compared  to  107,552  enrolled  during  2004  while  new  memberships  produced
increased  12% to 700,727  from  624,525.  Our active  memberships  increased 6%
during 2005 from 1,451,700 to 1,542,789. From the 3rd quarter of 2005 to the 4th
quarter of 2005, our active memberships decreased by 5,018 memberships.



-----------------------------------------------------------------------------------------------------------------------------------
|                                                                       Three Months Ended             |         Year Ended        |
|New Memberships:                                             12/31/2005     9/30/2005     12/31/2004  |  12/31/2005    12/31/2004 |
|----------------                                             ----------     ---------     ----------  |  ----------    ---------- |
                                                                                                                 
|New legal service membership sales.......................       147,764       171,281        149,759  |     666,595       599,929 |
|New "stand-alone" IDT membership sales...................         9,430         8,583          7,137  |      34,132        24,596 |
|                                                             ----------     ---------     ----------  |  ----------    ---------- |
|         Total new membership sales......................       157,194       179,864        156,896  |     700,727       624,525 |
|                                                             ----------     ---------     ----------  |  ----------    ---------- |
|New "add-on" IDT membership sales........................       102,052       118,556         85,918  |     441,108       335,792 |
|Average Annual Membership fee............................       $325.34       $335.67        $306.48  |     $322.04       $303.36 |
|                                                                                                      |                           |
|Active Memberships:                                                                                   |                           |
|-------------------                                                                                   |                           |
|Active legal service memberships at end of period........     1,490,847     1,502,022      1,424,707  |   1,490,847     1,424,707 |
|Active "stand-alone" IDT memberships at end of period                                                 |                           |
|    (see note below).....................................        51,942        45,785         26,993  |      51,942        26,993 |
|                                                             ----------     ---------     ----------  |  ----------    ---------- |
|         Total active memberships at end of period.......     1,542,789     1,547,807      1,451,700  |  1,542,789     1,451,700  |
|                                                             ----------     ---------     ----------  |  ----------    ---------- |
|Active "add-on" IDT memberships at end of period                                                      |                           |
|    (see note below).....................................       461,094       439,962        283,889  |     461,094       283,889 |
|                                                                                                      |                           |
|New Sales Associates:                                                                                 |                           |
|---------------------                                                                                 |                           |
|New sales associates recruited...........................        52,168        67,321         41,829  |     242,223       107,552 |
|Average enrollment fee paid by new sales associates......        $49.90        $50.12        $105.97  |      $56.61       $110.07 |
|                                                                                                      |                           |
|Average Membership fee in force:                                                                      |                           |
|--------------------------------                                                                      |                           |
|Average Annual Membership fee............................       $286.60       $285.18        $274.02  |     $286.60       $274.02 |
|Note - reflects 6,931 net transfers from "add-on" status to "stand-alone" status during the quarter   |                           |
-----------------------------------------------------------------------------------------------------------------------------------








     Our total active  membership  premium in force increased  approximately 11%
during  2005  and  represents  the  13th  consecutive  year  of  increasing  our
membership base and membership fees. The 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 71.6% for 2005.

     We anticipate  announcing  our 2005 fourth  quarter and yearly  earnings on
February  20,  2006 after the market  closes and  hosting a  conference  call to
discuss such earnings on February 22, 2006.

     About Pre-Paid Legal Services, Inc.
     Pre-Paid  Legal  Services,  Inc.  develops,  underwrites  and markets legal
service  plans  across  North  America.  The plans  provide  for  legal  service
benefits,  including unlimited attorney consultation,  letter writing,  document
preparation  and  review,   will   preparation,   traffic   violation   defense,
automobile-related criminal charges defense and a general trial defense. We also
market an identity theft protection plan. More information can be located at our
homepage on the worldwide web 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  significantly  our employee group  membership  sales,  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 and that
we may have material  weaknesses  in our internal  control  environment.  Please
refer  to  pages  38 and 39 of our  2004  Form  10-K  and  pages  8 and 9 of our
September 30, 2005 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.

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