Do I need to unlock my phone to use Consumer Cellular?

I bought a used Iphone 3GS that was an AT&T phone and I was planning to use it with Consumer Cellular who said that I wouldn't need to unlock the phone to use their service. When the phone arrived it worked fine, I didn't have to go through any activation, it just went straight to the home screen. After inserting a SIM card and calling to activate it, the phone continued to work and I was able to text/make calls. Then it said it needed to be updated so I plugged it into itunes and let it be; when I checked on it it had restored itself and now I can no longer get into the phone. All I get is the activating phone screen and it won't recognize my SIM anymore. I bought a new SIM to see if that was the problem..still won't work. Why would it work one minute than just stop? Does this mean that I do infact have to unlock the phone to use it with my new service??

The used iPhone you purchased was apparently jailbroken to unlock it, and restoring iOS removed that jailbreak and your iPhone locked back to AT&T. Only AT&T can unlock it, assuming that the jailbreak hasn't rendered that now impossible as can happen. Here are AT&T's official requirements and procedure for unlocking an iPhone:
https://www.att.com/deviceunlock/client/en_US/
Note these terms in particular:
The person requesting the unlock must be one of the following:
• a current AT&T customer
• a former AT&T customer who can provide the phone number or account number for the account
so you may not be able to get that iPhone unlocked.
Regards.

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