USE OF TELEPHONE FOR DEBT COLLECTION PURPOSES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP72-00310R000100430002-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 5
• Document Creation Date: December 12, 2016
• Document Release Date: April 9, 2002
• Sequence Number: 2
• Publication Date: July 7, 1970
• Content Type: MF

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7 July 1970
MEMORANDUM FOR: Assistant Manager
Credit Union
UWECT: Use of Telephone for Debt Collection
Purposes
1. Your memorandum of 1 July 1970 attached a Credit
Union League news brief which included an excerpt from the
Federal Register of 16 July 1970, page 9873 on this subject.
The information in the news brief Is incomplete and. I believe,
misleading. For your information I attach a complete copy of
the Federal Communications Commission notice which appeared
in the Federal Register cited above.
STATINTL
8. There is no reason to believe that normal use of the
telephone by the Credit Union to assist in collection of overdue
accounts is proscribed by the FCC or the telephone company
tariffs. Calls to the debtor or his employer ear se are not pro-
hibited. The restriction is against unreasonable use of the
telephone so as to frighten, abuse or harass the debtor. I assume
you do not do this and do not make threats or untrue allegations.
Under these circumstances, your use will not be in violation of
Federal law or regulations.
Assistant General Counsel
NTL OGC? ab
Di st rtrrarrdn:
Orig. & 1 - Ad 'essee
1 -'.E PLOYEE RELATIONS & ACTIVITIES
1 .. JDM Signer
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STATINTL
61
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Policy Implementation, Office of
risf.uiit Secretary for Health and
iie Afairs.
i in, i.hc c'.coined service the po-
! )uputy Assista!it Secretary for
uNI TT'Arl (Z't'ATi;5 CIVIL SERV-
u5; (.'OMMiSSION,
,r.reEs C. S1v12Y,
Executive Assistant to
the Conv aissioners.
-7156; Filed, June 15, 1970;
8:?17 a.ni.]
Uapf.,,aa~itT1oNI$
int;ly permit "ui,iicrs to use his telc- 2. Prior to filing its abovv:-rr..ca
phone" for mood purliose. Penalties for application, L. ^.:r;land I 1 ':.
violation of section 223 are a fine up to Inc., by letter dated August 3:, ob-
$500 or 6 months' imprisonment, or both, jected to any further renew ;.1 of license
47 U.S.C. 223. of aeronautical advisory Lion KJA7
The Commission is concerned that on the grounds that Roberts Flying
some users of telephone service may be Service, Inc., has repeatedly operated it
unaware of their obligations to refrain -ration in Violatiau of L'7.:357 (a) and
from using the service for abusive or (b) of the Cancan;:,loon';; rule;. Section
hara:;sinrg; calls. It is also concerned that 87.257 (a) and obi of the Cuin!nir.r,ion's
other users may be wilfully and re- rule; requires that at all Limes when an
pcatedly violating the provision of the aeronautical advisory station is in op-
tariffs and the applicable statutes, and oration, nonpublic service shall be pro-
that the telephone companies are not vided to any private aircraft station upon
adequately enforcing their tariffs. Ac- request and without dis,crimi.nation, and
cordingly, the Commission is issuing this that communications by such a station
Public Notice in order that the public shall be impartial with respect to infor-
may be informed of the requirements of lnation concerning similar f.vr,iia hie
law in this area and so that users may ground services at the land area. By
be alerted to their legal obligations in letter dated November 10, 19 !), David P.
a
FCC 70-6091 the use of the telephone and the penal- Johnson, pilot engaged in general avi-
JSE OF DEBT ties for failure to abide thereby. The ation in the Lakeland, Fla., area, alleged
T ` I "C~ 'c-'~a^~? c FOR has also this date sent that on several occasions when he was
CGLLECtliON PURPOSES letters to the Bell, General, United, and engaged in cross-country flights the
JUNE 10, 1970. Continental telephone systems request- Lakeland Unicom had failed to reply to
The Commission has received informa- ing them to take positive steps to inform his request for takeoff or landing in-
The that interstate telephone service is present and potential customers of the formation, and discriminated against
being increasingly used for collection of requirements of law, and to effectuate him by providing other aircraft making
claimed debts in ways that are or Inay be a more vigorous enforcement of their the same request in the period immedi-
tariffs. ately following his futile efforts with
in violation of applicable tariffs of the Action by the Commission June 10, full information pertaining to their pro-
telephone companies and criminal 1970: posed landing.
statutes. Practices alleged include calling
at odd hours of the day or night; re- FEDERAL COMMUNICATIONS 3. Roberts Flying Service, Inc., donies
rs COMMISSION, the allegation that it has operated sta-
eace cans; nails +o fri-A s n
i
hb
p
e
g
o
m a variety o Sccrelai y. and (b) of the Commission's rules, and
In ,
y of " threats; """" calls "' assert-
a lugfa by letter filed November 10, 1969, alleges
i.ry falsely that credit ratings will be [P.R. Doe. 70-7469; Filed, June 15, 1070; that on various occasions since July 1966
hurt; calls falsely stating that legal 8:48 a.m.]
y?'ocess is about to be served; calls de- to the present time, members of Lake-
land Flying Service, Inc., have illegally
rianding, payments for amounts not [Docket Nos. 18870, 18871; FCC 705731 used an unlicensed Unicorn radio trans-
ot,ed; calls to places of employment; and mitten in direct violation of the Coni-
calls misrepresenting the terms and con- ROI3ERTS FLYING Si ".VICE, INC., AND mission's rules, and have admitted d to
ch.:ion of existing or proposed contracts. LAC{ELAND FLYING SERVICE, INC. such violations in a meeting between the
Although many of these calls are placed parties and official representatives of the
on a local basis, there is increasing indi- Order Designating Applications for
cation that such improper practices also Consolidated Hearing on Stated city of Lakeland.
involve use of interstate toll and Wide issues 4. In view of the foregoing: It is or-
involve
Telephone Service (WATS). dered, That pursuant to the provisions
:aailfs of the telephone companies In regard applications of Roberts Fly- of section 309(e) of the Communications
Io -lid use of the telephone " * * fora ing Service, Inc., Lakeland,, Fla., Docket Act of 1934, as amended, the above cap-
cail or calls, anonymous or otherwise, if in No. 18870, File No. 86-A-RL-109; Lake- tioned applications are hereby deC?' :-
a manner reasonably to be expected to land Flying Service, Inc., Lakeland, Fla., nated for hearing in a consolidated
frighten, abuse, torment, or harass an- Docket No. 18871, File No. 65-A-L-99; proceeding at a time and place to be
c nor;" or for calls that "* interfere for Aeronautical Advisory Station to specified in a subsequent order on the
ossi?easonably with the use of the service serve the Lakeland Municipal Airport, following issues:
oy one or more other customers;" or calls Lakeland, Fla. (a) To determine which applicant
for "* * * unlawful purpose." Upon 1. Roberts Flying Service, Inc., has would provide the public with better
violation of any of these conditions the filed an application for renewal of the aeronautical advisory service based on -
telephone company can, -by written license of aeronautical advisory station the following considerations:
notice, discontinue service "forthwith." -KJA7, Lakeland Municipal Airport, (1) Location of the fixed-base oper-
These tariff regulations are filed with Lakeland, Fla., and Lakeland Flying ation and proposed radio station in re-
this Commission pursuant to section 203 Service, Inc., has filed an application for lation to the landing area and traffic
of the Communications Act, 47 U.S.C. a new aeronautical advisory station at patterns;
203, and are binding on the telephone the sane airport. Section 87.251(a) of (2) Hours of operation;
company and customer alike. Users of the the Commission's rules provides that
telephone service are also subject to the only one aeronautical advisory station (3) ) service; Personnel available to provide ad-
enforcement proceedings provided for in may be authorized to operate at a land-
sections 401 and 411 of the Communica- ing area. Therefore, the above-captioned (4) Experience of applicant and em-
tions Act. applications are mutually exclusive. Ac- ployees in aviation and aviation commu-
In addition to the loss of telephone cordingly, it is necessary to designate the nications;
service for ;violation of the tariffs, section applications for hearing. Except for the (5) Ability to provide information
223 of the Communications Act makes it issues specified heroin each applicant is pertaining to primary and secondary
a crime to use the telephone in the otherwise qualified. communications as specified in ? 87:
1`istrict of Columbia or in interstate or 257 of the Commission's rules;
eign communication to make "re- ~ Commissioners Barney (Acting Chair- (6) Proposed radio system including
rated telephone calls, during which man), Robert B. Lee, Johnson, H. Rex Lee, control and dispatch points; and
er
sation 4 1Re jkk" 2t38~/ 8 i~IA~F }Fg240840F40001(C 43 00 '4ability of the r die fa-
lu-
p
son
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1 July 1970
MEMORANDUM FOR
SUBJECT
Use of Telephone for Collection Purposes
The following is an excerpt from a Credit Union League
publication called "Newsbriefs":
"Federal Communication Commission Warns About
Using Phones For Collection Purposes
The Federal Communications Commission has pub-
lished a notice in the "Federal Register" of June 10,
1970 "in order that the public may be informed of the
requirements of law" regarding use of the telephone
in ways that may be a violation of law or applicable
telephone tariffs. According to the announcement:
"Practices alleged include calling at odd hours of
the day or night; repeated calls; calls to friends,
neighbors, relatives, employers, and children; calls
making a variety of threats; calls asserting falsely
that credit ratings will be hurt; calls falsely
stating that legal process is about to be served;
calls demanding payments for amounts not owed; calls
to places of employment; and calls misrepresenting
the terms and condition of existing or proposed contracts."
My concern is with the amount of pressure we can apply
via telephone and specifically the calls to places of employ-
ment - does this prevent us from making any calls to the
employer?
I would appreciate your guidance in this matter.
2U July 1910.
will be on annual leave through
STATINTL
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 C
CREDIT UNION SERVICES, INC. has authorized the formation of a subsidiary company to be
known as CUSCO, Inc., a Virginia corporation, for the purpose of operating a general
insurance agency and other services. Counsel has prepared the Articles of Incorporation
and the document will be signed by three incorporators on June 30. A stockholders'
meeting will be held on July 7th for the purpose of electing the first board of directors.
The new company will also be the contractor for credit union service centers. Negotiations
are underway to establish the first service center in the Iverson Mall area.
THE SENATE AND HOUSE are in general agreement on a provision to authorize $250 million to
subsidize part of the cost of the Federal Home Loan Bank System advances to savings and
loan associations.
THE COMMERCE COMMITTEE OF THE HOUSE OF REPRESENTATIVES is hearing testimony on the con-
troversial issue of "class action suits." Pending before the Committee is a bill (H.R.
14931) to allow consumers the right to sue individually or as a class to recover damages
or a rescission of contract from businesses conducting illegal business operations.
SENATOR ALBERT GORE (D-Tenn.) has introduced a bill (S. 3979) which would establish a
national maximum interest rate "for any regular credit or loan transaction entered into
after July 1, 1971" of not to exceed 6%. The interest is defined as "the sum of all
charges payable directly or indirectly" making the loan or credit extension
The bill would make a willful violator subject to civil penalties of twice the
total interest charge and attorney fees. It also directs the Federal Reserve System to
initiate and sustain a gradual lowering of interest rates to the level of. 6% by July 1,
1971.
FEDERAL COMMUNICATION COMMISSION WARNS ABOUT USING PHONES FOR COLLECTION PURPOSES - The
Federal Communications Commission has published a notice in the "Federal Register" of
June 10, 1970 "in order that the public may be informed of the requirements of law" re-
garding use of the telephone in ways that may be a. violation of law or applicable tele-
phone tariffs. According to the announcement: "Practices alleged include calling at
odd hours of the day or night; repeated calls; calls to friends, neighbors, realtives,
employers, and children; calls making a variety of threats; calls asserting falsely that
credit ratings will be hurt; calls falsely stating that legal process is about to be
served; calls demanding payments for amounts not owed; calls to places of employment; and
calls misrepresenting the terms and condition of existing or proposed contracts."
WHAT A NAME - Here is the name of a credit union located in Maryland. It will probably
take a military mind to decode this one - NAVRECONTECHSUPPCEN Federal Credit Union. It
has to be some kind of a Navy Technical Supply Center, or sompin.
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RERINE t,KATHY) F. LARSON served her last day as minager of the Treasury Department
Credit Tinion on Friday, June 26. On Thursday the credit union officials had an
. _" retirement program and on Friday invited frien..s and officials had a modest
rarnwel1. party. Kathy joined the staff o+.. Trea.sucy FCU in 1957, when reported
were approximately $300,000. The credit union reputed assets of $1,965,006 on
31, 199 and it now exceeds the $2 million mark. Kathy is looking forward to
a toll month (December) in Puerto Rico and to so.^.e European travel in 1971. Good
ac ::nappy retirement are wished by all her friends and associates.
E'.- I.,ohr 1967 Cabin Cruiser. Freshwater cooling. Chrysler 290 H.P. Marine Engine-
;e. Exterior refinished this spring. Ship to Shore. Fishing rod holders. One
Mast be seen at Weeks Marine RR, Hollvwood, Maryland, Illness in owner's
Sloane) family reason for sale. Price, $6,75'i. For more information call
League office - 737-5282.
Fair credit billing legislation that will prevent consumers
rs from being
by computerized bill collectors - including bank-5 issuing credit cards - will be
1 in tiie Senate by Senator William Proxmire (D-W.s.).
are, wno is chariman of the Senate Financial In-titutions Subcommittee, pledged
proosed fair credit billing measure top priority. The Senator criticized
lack of responsibility in correcting billing errors. "Many of this country's
moss prestigious credit card companies have down themselves to be completely
of correcting even the most simple billing error," Proxmire charged. "Many
have pad to spend months and even years to clear up the companies' mistakes,"
ored -hat the companies claim they give prompt and personal attention to all
TI-gat only in rare instance do they let customer inquiries slip by.
are ''so fantastic as to suggest that either fir-.s have no systematic procedures
i_ng errors or are attempting to blackmail consume>r.s into paying debts they did
IN dE AMOUNT OF WEEKLY SALARY that most be p;:d to executive, administrative
s"ona employees in order to exempt then from tine premium overtime pay require-
L,e Fair Labor Standards Act was recently announred by the Labor Department.
new rues, which became effective on February 2! executive and administrative
musha paid salaries of at least S125 per week and professional employees must
Sc $140 per week on a Salary or fee basis to qu.Lify for the exemption. The
_a._es, set in 1963, were $100 and $115, respecti-ely.
a l " NEWS FROM MERRILL LYNCH - Yields of U.S. Tre-sury bills were lower this week
,gym i5 to 33 basis points Dealer volume on a d..il.y average basis increased by
a from the previous week. At Thursday's auction the 274-day bills due March
were awarded at an average discount rate of 7.01:2% (7.352% last month) and the
} due June 30, 1971, sold at an average discount rate of 7.079% (7.277% a
At Monday's regular weekly auction the 3-month bills due September 24, 19,0,
ed at an average discount rate of 6.626:' (6,731- last week). The 6-month bills
24.. 1970, sold at an average discount rate of 6.929% (6.947% a week ago).
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