Method and apparatus for performing an automated collect call

A telephone system and method of operation are disclosed which use a microprocessor control-system (10), a speech generator (34) and speech memory (46) to automatically place collect calls without the need of a live operator. The telephone uses the microprocessor control system (10) and a speech record/playback-generator (44) to receive a destination number and a recorded name from a user. The telephone uses the speech generator (34) to play audio messages to prompt the user throughout the process. The phone informs a called party of the identity of the user and receives responses from the called party through a DTMF receiver (52). A communication path is established through a telephone line interface (38) if the phone receives a response indicating the called party accepts the charges for the collect call. The microprocessor control system (10) generates a billing record for the call which is stored in a call record memory (11). The billing record can later be retrieved to facilitate billing the call.