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                FEDERAL COMMUNICATIONS COMMISSION
                     WASHINGTON, D.C. 20554
                                                       
                          May 17, 2004


VIA CERTIFIED MAIL
RETURN RECEIPT REQUESTED
AND FACSIMILE

Key Financial Corporation
Attn: James Curry, Executive
         Jeffrey Dell, Senior Vice President
8550 Ulmerton Rd., Suite 132
Largo, FL 33771

     RE: EB-04-TC-009

Dear Mr. Curry and Mr. Dell: 

     This is an official CITATION, issued pursuant to section 
503(b)(5) of the Communications Act of 1934, as amended (the 
Communications Act), 47 U.S.C.  503(b)(5), for violations of the 
Federal Communications Commission's rules that govern telephone 
solicitations and unsolicited advertisements.1  As explained 
below, future violations of the Commission's rules in this regard 
may subject your company to monetary forfeitures.

     By letter  dated  January 15,  2004, the  Telecommunications 
Consumers  Division   of  the  Commission's   Enforcement  Bureau 
notified you of consumer complaints regarding telemarketing calls 
that your company, or an entity acting on behalf of your company, 
made to  telephone lines that are  contained in the  National Do-
Not-Call  Registry, and  provided you  an  opportunity to  submit 
information to demonstrate the lawfulness  of those calls.2   You 
responded by letter dated February 11, 2004.3  You do not dispute 
making such calls.  However, you claim  that the calls are exempt 
because they are  calls to set an appointment  for a face-to-face 
interview  with a  loan officer,  and that  your company  ``never 
sells anything or takes any money or credit card information over 
the  phone.''   Your  February  11,  2004  Letter  cites  section 
310.6(a)4 of  the Federal Trade Commission's  Telemarketing Sales 
Rules as exempting such calls.  

     This  Citation  does  not  determine  whether  16  C.F.R.   
310.6(b)(3) applies to  your company's calls to consumers  on the 
National  Do-Not-Call Registry.   The  FCC has  adopted  separate 
rules, codified at 47 C.F.R.  64.1200, that govern calls made by 
your company. As discussed in more detail below, the FCC has also 
adopted exemptions for certain calls to  numbers contained on the 
National Do-Not-Call Registry.  Those exemptions do not, however,  
include an exemption similar to that adopted by the Federal Trade 
Commission in  16 C.F.R.   310.6(b)(3).  Your February  11, 2004 
Letter does  not claim  exemptions under FCC  rules and  does not 
otherwise  demonstrate   that   you  have   complied  with   such 
exemptions,  nor does  your February  11,  2004 Letter  otherwise 
demonstrate  that   you  have  complied  with   the  Commission's 
standards governing  use  of the  National Do-Not-Call  Registry.  
Accordingly, we issue this citation.

     Section 64.1200(c)(2) of the Commission's rules generally 
prohibits the delivery of telephone solicitations to residential 
telephone numbers that are contained in the National Do-Not-Call 
registry except in certain limited situations.  Under the 
Communications Act and the Commission's rules, a ``telephone 
solicitation'' is ``the initiation of a telephone call or message 
for the purpose of encouraging the purchase or rental of, or 
investment in, property, goods, or services, which is transmitted 
to any person.''5  Calls made by or on behalf of tax-exempt 
nonprofit groups are not considered to be telephone 
solicitations.  Similarly, calls that are made to a person who 
either has provided prior express invitation or permission to 
call6 or has an established business relationship7 with the 
caller are not considered to be telephone solicitations.  
Finally, the rules permit telephone solicitations to a consumer 
whose number is listed on the National Do-Not-Call Registry if 
that consumer has a personal relationship with the individual 
making the calls.8

     Accordingly, under the Commission's rules it is unlawful to 
deliver a telephone solicitation to a residential telephone line 
unless (1) the call is made by or on behalf of a tax-exempt 
nonprofit group; (2) the call is made by a person who has a 
personal relationship with the called party; (3) the called party 
has provided signed, written consent for the call to be made; or 
(4) the called party has made a purchase from, or had a 
transaction with, the caller within the 18 months immediately 
preceding the call or has made an inquiry or application 
regarding the caller's products or services within the three 
months immediately preceding the call, and the called party has 
not specifically asked the caller to stop all telemarketing 
calls. 

     Entities making telephone solicitations must honor do-not-
call registrations no later than three months after a number is 
placed on the National Do-Not-Call Registry, and for a period of 
no less than five years.  To accomplish this, section 
64.1200(c)(2)(i)(D) requires entities making telephone 
solicitations to use a version of the National Do-Not-Call 
Registry obtained no more than three months before any telephone 
solicitation is made, and to document this process.  An entity 
that does not claim one of the exemptions set forth above is not 
liable for calling a telephone number on the National Do-Not-Call 
Registry only if it is able to demonstrate that it has fully 
complied with the Commission's standards governing use of the 
National Do-Not-Call Registry as set out in section 
64.1200(c)(2)(i)(A)-(E) of the rules, and that the particular 
telephone solicitation call was the result of error. 

     If, after receipt of this citation, you violate the 
Communications Act or the Commission's rules in any manner 
described herein, the Commission may impose monetary forfeitures 
not to exceed $11,000 for each such violation or each day of a 
continuing violation. 9
 
     You may respond to this citation within 30 days from the 
date of this letter either through (1) a personal interview at 
the Commission's Field Office nearest to your place of business, 
or (2) a written statement.  Your response should specify the 
actions that you are taking to ensure that you do not violate the 
Commission's rules governing telephone solicitation and 
unsolicited advertisements, as described above.  
     
The nearest Commission field office appears to be the Tampa 
Office at 2203 N Lois Avenue, Room 1215, Tampa, FL 33607-2356.  
Please call Al McCloud at 202-418-2499 if you wish to schedule a 
personal interview.   You should schedule any interview to take 
place within 30 days of the date of this letter.  You should send 
any written statement within 30 days of the date of this letter 
to: 






               Kurt A. Schroeder
               Deputy Chief
                                    Telecommunications Consumers 
Division
               Enforcement Bureau
               Federal Communications Commission
               445-12th Street, S.W.
               Rm. 3-C366
               Washington, D.C.  20554 

Reference EB-04-TC-009 when corresponding with the Commission.

     Reasonable accommodations for people with disabilities are 
available upon request.  Include a description of the 
accommodation you will need including as much detail as you can.  
Also include a way we can contact you if we need more 
information.  Please allow at least 5 days advance notice; last 
minute requests will be accepted, but may be impossible to fill.  
Send an e-mail to fcc504@fcc.gov or call the Consumer & 
Governmental Affairs Bureau:

          For sign language interpreters, CART, and other 
reasonable accommodations: 
     202-418-0530 (voice), 202-418-0432 (tty);

          For accessible format materials (braille, large print, 
electronic files, and audio 
     format): 202-418-0531 (voice), 202-418-7365 (tty). 

     Under the Privacy Act of 1974, 5 U.S.C.  552(a)(e)(3), we 
are informing you that the Commission's staff will use all 
relevant material information before it, including information 
that you disclose in your interview or written statement, to 
determine what, if any, enforcement action is required to ensure 
your compliance with the Communications Act and the Commission's 
rules.  

     The knowing and willful making of any false statement, or 
the concealment of any material fact, in reply to this citation 
is punishable by fine or imprisonment under 18 U.S.C.  1001.

     Thank you in advance for your anticipated cooperation.

                         Sincerely, 

 

                         Kurt A. Schroeder
                         Deputy Chief, Telecommunications 
                         Consumers Division
                         Enforcement Bureau
                         Federal Communications Commission

Enclosures


_________________________

1 47 C.F.R.  64.1200.  A copy of these rules is enclosed for 
your convenience.

2 We have attached  97 complaint(s) on which this citation is 
based.  Complaints are from the states of California, Florida, 
Ohio, Alabama, and Virginia.

3 Letter dated February 11, 2004 from Jeffrey Dell, Sr. Vice 
President, Legal/Compliance, Key Financial Corp., to Kurt 
Schroeder, Deputy Chief, Telecommunications Consumers Division, 
Enforcement Bureau, File No. EB-04-TC-009 (``February 11, 2004 
Letter'').

4  We assume that your letter is referring to 16 C.F.R.,  
310.6(b)(3) of the Telemarketing Sales Rule which exempts 
transactions in which the sale of goods or services is not 
completed, and payment or authorization of payment is not 
required, until after a face-to-face sales presentation by the 
seller. 
 
5 47 U.S.C.  227(a)(3); 47 C.F.R.  64.1200(f)(9). 

6 Prior express invitation or permission to call a number 
contained on the National Do-Not-Call Registry must be evidenced 
by a signed, written agreement between a consumer and seller.  
The agreement must include both the consumer's consent to be 
called by the particular seller and the telephone number to which 
such calls may be placed.  47 C.F.R.  64.1200(c)(2)(ii).

7 An ``established business relationship'' means ``a prior or 
existing relationship formed by a voluntary two-way communication 
between a person or entity and a residential subscriber with or 
without an exchange of consideration, on the basis of the 
subscriber's purchase or transaction with the entity within the 
eighteen (18) months immediately preceding the date of the 
telephone call or on the basis of the subscriber's inquiry or 
application regarding products or services offered by the entity 
within the three months immediately preceding the date of the 
call, which relationship has not been previously terminated by 
either party.''  47 C.F.R.  64.1200(f)(3).   The established 
business relationship exception does not apply when a telephone 
subscriber has made a company-specific do-not-call request.  A 
company-specific do-not-call request terminates an established 
business relationship for telemarketing purposes even if the 
requester continues to do business with the company.  47 C.F.R. 
 64.1200(f)(3)(i); see also Rules and Regulations Implementing 
the Telephone Consumer Protection Act of 1991, Report and Order, 
7 FCC Rcd 8752, 8766 n.47, 8770 n.63 (1992); see also H.R. Rep. 
102-317, 1st Sess., 102nd Cong. at 15 (1991); Charvat v. Dispatch 
Consumer Services, Inc., 95 Ohio St. 3d 505, 769 N.E.2d 829 
(2002).  

8 47 C.F.R.  64.1200(c)(2)(iii).  A ``personal relationship'' 
exists if the recipient of the call is a ``family member, friend, 
or acquaintance of the telemarketer making the call.''  47 C.F.R. 
 64.1200(f)(11).

9 See 47 C.F.R.  1.80(b)(3).