On September 1, 2004, the FCC released the attached document entitled "Small Entity Compliance Guide:  Debt Collection and Red Light Rule".  The document is a useful reference guide intended for small businesses and other small organizations summarizing the FCC's procedures with respect to the collection of unpaid debts owed to the FCC.  The document is a "guide" only and the FCC reserves the right to adopt customized approaches on a case-by-case basis. The guide generally indicates that failure to pay debts owed to the FCC will result in those debts being referred to the Department of Treasury for collection; failure to pay will be reported to credit reporting agencies; and parties will be unable to obtain licenses or receive other benefits from the FCC.  The guide further explains that: Parties may challenge the validity of any debt within fifteen (15) days of notice of the debt. Parties unable to pay a debt owed to the FCC in one lump sum may request an installment payment plan. Parties may seek to have the debt compromised (i.e., reduced in amount).  The FCC is only authorized to do so when the principal balance of the debt is less than $100,000.  Only the Department of Justice may compromise debts exceeding $100,000. Under the "red light rule", the FCC will not grant applications or extend other benefits to parties until their outstanding FCC debts are resolved.  Beginning October 1, 2004, applicant TIN information will be matched within the FCC's database against debts owed to the FCC to determine whether any delinquencies apply, thereby triggering a "red light" in the system. Unpaid debts may also be collected by the garnishment of wages of the delinquent debtor without first obtaining a court order. September 2004 Back