[Congressional Record Volume 144, Number 78 (Tuesday, June 16, 1998)]
[House]
[Pages H4593-H4594]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]





                             General Leave

  Mr. GOODLATTE. Mr. Speaker, I ask unanimous consent that all Members 
may have 5 legislative days within which to revise and extend their 
remarks on H.R. 1847, the bill under discussion.
  The SPEAKER pro tempore (Mr. Ewing). Is there objection to the 
request of the gentleman from Massachusetts?
  There was no objection.
  Mr. VENTO. Mr. Speaker, I rise in support of the Telemarketing Fraud 
Prevention Act. This legislation represents a positive step in 
combating the growing problem of consumer and telemarketing fraud. 
Unfortunately, illegal telemarketing often targets the elderly and the 
disabled, many of whom lose their life's savings to such scams.
  Today telemarketing fraud is in focus. While conditions for older 
Americans have improved markedly since passage of the Older Americans 
Act of 1965, many still suffer in abusive situations ranging from 
financial exploitation to severe consumer and telemarketing fraud. Many 
seniors are faced with physical or mental disabilities, social 
isolation and limited financial resources which prevent them from being 
able to protect or advocate for themselves.
  According to the Federal Trade Commission (FTC), telemarketing fraud 
has mushroomed into a multi-billion dollar problem in the United 
States. Every year, thousands of consumers lose anywhere from a few 
dollars to their life savings to telephone con artists. The 
Telemarketing Fraud Prevention Act will protect consumers from losing 
their hard earned income to telemarketing scams.
  Specifically, HR 1847 increases the penalties against fraudulent 
telemarketing by increasing the recommended prison sentences for people 
convicted of consumer scams and deception. This legislation further 
increases the penalties incurred for telemarketing and consumer cams 
specifically targeted at older Americans.
  In addition to increasing the consequences of fraudulent 
telemarketing, the Telemarketing Fraud Prevention Act provides the 
necessary tools and resources to prevent and uncover illegal schemes 
that are targeted at older Americans. Telephone companies would be 
required to provide the name, address and physical location of 
businesses suspected of conducting telemarketing scams. Since scam 
artists are relentless in their pursuit of older Americans, this 
measure would allow Law Enforcement Officials to move more quickly in 
preventing such schemes and scams from occurring.
  Along with the FTC, several sources confirm that telemarketing fraud 
against older Americans is growing substantially. A 1996 American 
Association of Retired Persons (AARP) survey of people 50 years or 
older revealed that 57% were likely to receive calls from telemarketers 
at least once a week. Moreover, more than half the respondents 
indicated that they could not distinguish a legitimate telemarketer 
from a fraudulent one. It is not surprising that a fraud perpetrator 
would solicit an older American to attain a significant amount of 
money--often with a single phone call. Many senior citizens have worked 
diligently throughout their lives to build savings and retirement 
income.
  Congress is moving in the right direction by addressing the growing 
problems of consumer and telemarketing fraud. We need to provide 
adequate tools for our Law Enforcement Officers to combat and respond 
to telemarketing fraud, to punish those who perpetrate it, and to deter 
others from entering the arena. The Telemarketing Fraud Prevention Act 
is an important step in protecting our senior citizens from deception 
tactics and fraudulent activities.
  Mr. McCOLLUM. Mr. Speaker, in the 104th Congress, the House of 
Representatives passed by voice vote an identical version of H.R. 1847, 
the ``Telemarketing Fraud Prevention Act.'' The Senate failed to act on 
that legislation before final adjournment, and Mr. Goodlatte, a 
dedicated Member of the Judiciary Committee, picked up the flag and 
decided to advance this important issue in the 105th Congress.
  Once again, due to amendments made by the Senate, the House must pass 
H.R. 1847, a bill which will finally give some measure of protection to 
this Nation's elderly who are bilked by crooked telemarketers. As the 
Subcommittee on Crime heard last Congress, some retirees have lost 
their entire savings to mail and phone scams. The Federal Trade

[[Page H4594]]

Commission estimates that telemarketing fraud costs consumers about $40 
billion a year.
  Mr. Speaker, in the hands of a fraudulent telemarketer, a phone is a 
dangerous weapon. They will use every trick possible to get their 
victims to send money. Examples of such deceptions include offering 
phony investment schemes, claiming to work for charitable 
organizations, or promising grand trips and prizes. These telephone 
thieves are relentless in their pursuit of someone else's hard-earned 
paycheck.
  Although I am somewhat disappointed that the Senate chose to strike 
the specific level enhancements which the House passed, I am satisfied 
that this legislation will aid prosecutors in their efforts to track 
and prosecute crooked telemarketers.
  Moreover, I hope that the passage of this legislation sends a loud, 
clear message to the U.S. Sentencing Commission: review the guidelines 
carefully because the current average sentence for a telemarketer is 
too low! These tele-predators must do time for their crimes. 
Telemarketing fraud may be nonviolent, but it devastates families, 
destroys self-esteem and costs billions overall. If the Sentencing 
Commission does not make some sweeping changes to the fraud provisions 
as a result of this legislation, Congress will revisit this issue next 
year.
  Again, I thank my good friend from Virginia, Mr. Goodlatte, for not 
allowing this issue to go unnoticed. Telemarketing fraud conceivably 
affects every person who owns a telephone. I was proud to support this 
legislation in the 104th Congress, and I was proud to support H.R. 1847 
earlier this Congress, and I am extremely proud that finally we have a 
bi-partisan piece of legislation ready for the President's signature.
  Mr. ABERCROMBIE. Mr. Speaker, today I rise in strong support of H.R. 
1847, the Telemarketing Fraud Prevention Act.
  H.R. 1847 increases criminal penalties for telemarketing fraud, 
especially telemarketing fraud targeting senior citizens. Older 
Americans are the targets of many fraudulent telemarketers because they 
are generally home more often, may be more trusting, and they may be 
led to look on a smooth-talking telemarketer as a friend rather than 
someone preying on their life savings.
  The measure is a positive step forward to protecting consumers and 
our seniors, but we need to do more. Besides increasing penalties on 
fraudulent telemarketers, we need to help educate consumers of the 
dangers of fraudulent telemarketing. I sponsored several mail and 
telemarketing fraud briefings for senior citizens in my district, 
Honolulu, Hawaii. These educational briefings were designed to give 
vulnerable senior citizens a fighting chance against an industry 
designed to victimize them. I encourage my colleagues to work with 
organizations such as the AARP and educate senior citizens in their 
districts.
  H.R. 1847 also allows law enforcement officials to prosecute 
individuals for conspiracy to commit telemarketing fraud. This 
provision allows police and prosecutors to seek out and punish 
organizers of telemarketing scams, who often arrange the schemes but 
don't actually commit the fraud themselves.
  Telemarketing fraud robs Americans of an estimated $40 billion per 
year. The actual amount may be higher, because some consumers are too 
embarrassed to report that they have been defrauded or consumers fail 
to recognize that they have been victimized.
  I urge my colleagues to support H.R. 1847 and continue to work to 
eliminate telemarketing and mail fraud.
  Mr. GOODLATTE. Mr. Speaker, I have no further requests for time, and 
I yield back the balance of my time and urge a favorable vote.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Virginia (Mr. Goodlatte) that the House suspend the 
rules and concur in the Senate amendment to H.R. 1847.
  The question was taken.
  Mr. GOODLATTE. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 5 of rule I and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.

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