Some financial institutions and debt collection agencies are taking to the social media to locate those who owe or to lure brand new customers. Regulators in Washington are putting a microscope on the practices.
Rules mean nothing with social media
The Fair Debt Collections Practices Act does not take a look at the internet or social networking when looking at how collectors can contact consumers. The act was there to set up rules to shield customers from abusive collectors, but the Internet was never addressed.
The rules are fuzzy, but it is recommended that companies that are part of the Association of Credit and Collection Professionals do not use social networking for collection, according to Mark Schiffman of the trade association.
Social media used by some
The advice is clearly not required, so many do not listen.
Bloomberg did a piece where they talked to lawyer Bill Howard about the collector practices.
"You get a friend request from some chick in a bikini," Howard said. "You say yes, and then somebody says 'by the way, I'm a debt collector.'"
Many believe that this is way too close to harassment and may even be considered stalking.
Federal level considered
This issue has been noted by the Federal Trade Commission and Consumer Financial Protection Bureau. The organizations will decide if collectors can use LinkedIn, Facebook and other social sites to contact consumers.
Customers will be able to easily complain about any troubles with rules on debt collection businesses already, but apparently that will have to be expanded.
Checking up on banking institutions
There are also ways the public can weigh in on how financial instructions use social networking. This is something the Federal Financial institutions Examination Council is looking at and wants public opinion. Go to:
Their website
The Consumer Financial Protection Bureau points out that 30 million Americans are being pursued by collectors, and about $12 billion in revenue is made in the Accounts Receivable Management industry annually. That a lot of cash and a lot of abuse.
Don't be afraid to speak up
Customers who feel they are being harassed by debt collectors should report the activity on line or by telephone to the CFPB or the Federal Trade Commission.
Rules mean nothing with social media
The Fair Debt Collections Practices Act does not take a look at the internet or social networking when looking at how collectors can contact consumers. The act was there to set up rules to shield customers from abusive collectors, but the Internet was never addressed.
The rules are fuzzy, but it is recommended that companies that are part of the Association of Credit and Collection Professionals do not use social networking for collection, according to Mark Schiffman of the trade association.
Social media used by some
The advice is clearly not required, so many do not listen.
Bloomberg did a piece where they talked to lawyer Bill Howard about the collector practices.
"You get a friend request from some chick in a bikini," Howard said. "You say yes, and then somebody says 'by the way, I'm a debt collector.'"
Many believe that this is way too close to harassment and may even be considered stalking.
Federal level considered
This issue has been noted by the Federal Trade Commission and Consumer Financial Protection Bureau. The organizations will decide if collectors can use LinkedIn, Facebook and other social sites to contact consumers.
Customers will be able to easily complain about any troubles with rules on debt collection businesses already, but apparently that will have to be expanded.
Checking up on banking institutions
There are also ways the public can weigh in on how financial instructions use social networking. This is something the Federal Financial institutions Examination Council is looking at and wants public opinion. Go to:
Their website
The Consumer Financial Protection Bureau points out that 30 million Americans are being pursued by collectors, and about $12 billion in revenue is made in the Accounts Receivable Management industry annually. That a lot of cash and a lot of abuse.
Don't be afraid to speak up
Customers who feel they are being harassed by debt collectors should report the activity on line or by telephone to the CFPB or the Federal Trade Commission.
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