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):  July 24, 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 July 24, 2006,  Pre-Paid Legal Services,  Inc. (the "Company")  issued a
press release announcing its earnings and operating results for the three months
ended June 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 July 24, 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:  July 24, 2006





For Release 8:30 a.m. Eastern                Company      Steve Williamson
Monday, July 24, 2006                        Contact:        (580) 436-1234

         Pre-Paid Legal Announces 2006 Second Quarter Financial Results
                                    -- -- --
   Membership Revenues Up 6%; Net Income Up 76%; EPS Up 84% & Cash Flow Up 70%

     ADA,  OK,  July  24,  2006 -  Pre-Paid  Legal  Services,  Inc.  (NYSE:PPD),
announced  financial  results  for the  second  quarter  ended  June  30,  2006.
Membership  revenues  increased 6% to $103.1  million from $97.1 million for the
same period last year.  Net income  increased 76% to $12.1  million  compared to
$6.9 million  primarily due to lower  commissions  of $32.7 million  compared to
$38.8 million for the previous year's  comparable  period.  Diluted earnings per
share for the  quarter  increased  84% to 81 cents  per share  from 44 cents per
share for the prior  year's  comparable  quarter,  slightly  higher than the net
income  increase  due to the 5%  decrease  in the  weighted  average  number  of
outstanding shares.

     First half 2006 membership revenues increased 8% to a record $204.9 million
vs.  $189.6  million  for the first  half of 2005.  Primarily  due to  increased
membership  revenues,  net income for the first six months of 2006 increased 59%
to $25.2  million vs.  $15.8  million for the first six months of 2005.  Diluted
earnings per share increased 65% to $1.65 vs. $1.00.  Diluted earnings per share
increased  more  than  net  income  due to the 3%  decrease  in  diluted  shares
outstanding.

     Net cash provided from  operating  activities  before changes in assets and
liabilities  for the six  months  ended  June 30,  2006  increased  51% to $28.6
million compared to $18.9 million for the comparable  period of 2005. During the
first six months of 2006, we returned $37.6 million to shareholders  through the
repurchase  of 1.1 million  shares of common stock at an average per share price
of $35.09 and also paid $4.6  million in  dividends.  Since April 1999,  we have
returned  $260.1  million to  shareholders  through the purchase of 10.5 million
shares,  average price of $24.81 per share, and $17.1 million in dividends for a
combined total of $277.2 million  representing  more than 115 percent of our net
earnings  during  the same  timeframe.  We have  reduced  the  number  of shares
outstanding  by  approximately  39% from 23.6  million at March 31, 1999 to 14.5
million today. At June 30, 2006, our total indebtedness was $99.0 million and we
had unpledged cash and investment balances exceeding $100 million.

     Second quarter 2006  membership  fees increased  slightly to $103.1 million
from $101.7 million for the first quarter of 2006.  Associate  services revenues
decreased  during the 2006  second  quarter by  approximately  $143,000  to $6.8
million from $7.0 million for the 2006 first quarter and associate  services and
direct  marketing  expenses  increased  by  $282,000  during  the  same  period.
Membership benefits totaled $36.5 million in the second quarter of 2006 compared
to $35.6  million for the 2006 first quarter and  represented  35% of membership
fees for both periods.  Commissions  to associates  totaled $32.7 million in the
2006 second  quarter  compared to $31.9  million for the 2006 first  quarter and
represented 32% and 31%,  respectively,  of membership fees for the two periods.
General and administrative  expenses increased during the 2006 second quarter to
$13.0  million  compared  to  $12.5  million  for the  2006  first  quarter  and
represented 13% and 12%, respectively, of membership fees for the two periods.

     The Company  will conduct a  conference  call to present the first  quarter
results on Wednesday,  July 26, 2006, at 8:30 a.m.  Eastern Time. The conference
call will be webcast on the investor relations' page of  www.prepaidlegal.com or
may be accessed  by dialing  (719)  457-2626.  Audio  replay  will be  available
beginning  at 11:30  a.m.  Eastern  Time on July 26,  2006 and will run  through
midnight Wednesday,  August 2, 2006 by dialing (719) 457-0820;  passcode for the
replay  is  4834170.  The  presentation  will  be  available  on  the  web  site
indefinitely  by  selecting  "Earnings  Calls"  under the  "Investor  Relations"
section.   Questions   may  be  submitted   prior  to  the  call  via  email  to
investor@pplsi.com.

     The Company expects to file its quarterly report on Form 10-Q for the three
months ended June 30, 2006 later this week.

     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  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 March 31,
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.







PRE-PAID LEGAL SERVICES, INC.
Financial Highlights (Unaudited)
                                                                           Three Months Ended         Six Months Ended
                                                                                June 30,                 June 30,
                                                                        ------------------------  ------------------------
                                                                            2006         2005         2006         2005
                                                                        -----------  -----------  -----------  -----------
Revenues:
                                                                                                   
  Membership fees....................................................   $  103,111   $   97,093   $  204,851   $  189,597
  Associate services.................................................        6,820        7,175       13,783       14,217
  Other..............................................................        1,267        1,351        2,524        2,700
                                                                        -----------  -----------  -----------  -----------
                                                                           111,198      105,619      221,158      206,514
                                                                        -----------  -----------  -----------  -----------

Costs and expenses:
  Membership benefits................................................       36,490       33,710       72,118       66,431
  Commissions........................................................       32,745       38,820       64,630       70,497
  Associate services and direct marketing............................        7,584        7,963       14,886       17,059
  General and administrative.........................................       13,020       12,337       25,487       23,436
  Other, net.........................................................        2,900        2,326        5,623        4,967
                                                                        -----------  -----------  -----------  -----------
                                                                            92,739       95,156      182,744      182,390
                                                                        -----------  -----------  -----------  -----------

Income before income taxes...........................................       18,459       10,463       38,414       24,124
Provision for income taxes...........................................        6,369        3,610       13,253        8,323
                                                                        -----------  -----------  -----------  -----------
Net income...........................................................    $  12,090    $   6,853    $  25,161    $  15,801
                                                                        -----------  -----------  -----------  -----------

Basic earnings per common share......................................    $    .81     $    .45     $   1.66     $   1.02
                                                                        -----------  -----------  -----------  -----------

Diluted earnings per common share....................................    $    .81     $    .44     $   1.65     $   1.00
                                                                        -----------  -----------  -----------  -----------

Weighted average number of shares:
  Basic..............................................................       14,863       15,397       15,125       15,480
                                                                        -----------  -----------  -----------  -----------
  Diluted............................................................       14,957       15,670       15,243       15,755
                                                                        -----------  -----------  -----------  -----------

Net cash provided by operating activities before
  changes in assets and liabilities..................................   $   13,593   $    8,018   $   28,599   $   18,947
Net cash provided by operating activities............................   $    9,656   $    3,170   $   27,933   $   20,379
Net cash provided by (used in) investing activities..................   $    4,066   $    6,049   $   (3,893)  $    3,162
Net cash provided by (used in) financing activities..................   $   43,881   $   (6,527)  $   18,808   $  (27,238)
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