Some financial institutions and debt collection agencies are taking to the social media to locate those who owe or to lure new consumers. Regulators in Washington are putting a microscope on the methods.
Social media slips between regulatory cracks
The Fair Debt Collections Methods Act, established more than 30 years ago, protects customers from many abusive collection methods. However, those regulations were established long before there was such a thing as the Internet or social media. Therefore, the rules have been spongy on the matter.
The Association of Credit and Collection Professionals is an international trade association that Mark Schiffman is part of. He explained that member companies should not use social media since the rules are not clear.
Many think social media should be used
Not every collector listens to the advice.
The methods were discussed by lawyer Billy Howard in Bloomberg.
"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 think that this is way too close to harassment and may even be considered stalking.
Federal level considered
It may not be allowed for collectors to use Facebook, Twitter, Google Plus and LinkedIn to contact consumers soon as the Federal Trade Commission and Consumer Financial Protection Bureau are looking into stopping abusive methods.
Consumers will be able to very easily complain about any troubles with rules on debt collection companies already, but apparently that will have to be expanded.
More difficulties with banks
The Federal Financial institutions Examination Council wants to put more limits on how financial institutions can use social networking, and it wants public opinion on the issue. You can get more information by going to:
Their website
The CFPB states there are about 30 million American customers being pursued by collection companies today. The Accounts Receivable Management industry earns about $12 billion in revenue each year.
State what you believe
Consumers 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.
Social media slips between regulatory cracks
The Fair Debt Collections Methods Act, established more than 30 years ago, protects customers from many abusive collection methods. However, those regulations were established long before there was such a thing as the Internet or social media. Therefore, the rules have been spongy on the matter.
The Association of Credit and Collection Professionals is an international trade association that Mark Schiffman is part of. He explained that member companies should not use social media since the rules are not clear.
Many think social media should be used
Not every collector listens to the advice.
The methods were discussed by lawyer Billy Howard in Bloomberg.
"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 think that this is way too close to harassment and may even be considered stalking.
Federal level considered
It may not be allowed for collectors to use Facebook, Twitter, Google Plus and LinkedIn to contact consumers soon as the Federal Trade Commission and Consumer Financial Protection Bureau are looking into stopping abusive methods.
Consumers will be able to very easily complain about any troubles with rules on debt collection companies already, but apparently that will have to be expanded.
More difficulties with banks
The Federal Financial institutions Examination Council wants to put more limits on how financial institutions can use social networking, and it wants public opinion on the issue. You can get more information by going to:
Their website
The CFPB states there are about 30 million American customers being pursued by collection companies today. The Accounts Receivable Management industry earns about $12 billion in revenue each year.
State what you believe
Consumers 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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