In the wake of stiffer regulations, some debt collectors and financial institutions have turned to the social media as a way to locate debtors and to drum up brand new business. However, federal regulators are looking into limiting the practice.
Getting past all the laws
There have been a lot of rules guarding customers from abusive collectors, but they were established over 30 years ago. This was long before social networking and the internet when the Fair Debt Collections Practices Act was put together.
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.
Many think social media should be used
Not every debt collector listens to the advice.
Bloomberg did a piece where they talked to attorney Bill Howard about the debt collector methods.
"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.'"
It is close to stalking or harassment, some believe.
Federal level considered
It may not be allowed for collectors to use Facebook, Twitter, Google Plus and LinkedIn to contact customers soon as the Federal Trade Commission and CFPB are looking into stopping abusive practices.
The federal agencies have already laid down rules for debt collection businesses, regulating aggressive rhetoric, making sure consumers are kept updated on any legal actions, and also making it easier for customers to register complaints.
More troubles with financial institutions
Meanwhile, The U.S. Federal Banking institutions Examination Council is urging the public to weigh in on its proposed guidance, seeking to lay down limitations for how banking institutions can use social media in attracting business. To view that guidance, go to:
The Regulations Government Website
The CFPB 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 ton of abuse.
Give you opinion
Anyone who is being harassed by debt collectors should report it to the Federal Trade Commission or Consumer Financial Protection Bureau right away.
Getting past all the laws
There have been a lot of rules guarding customers from abusive collectors, but they were established over 30 years ago. This was long before social networking and the internet when the Fair Debt Collections Practices Act was put together.
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.
Many think social media should be used
Not every debt collector listens to the advice.
Bloomberg did a piece where they talked to attorney Bill Howard about the debt collector methods.
"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.'"
It is close to stalking or harassment, some believe.
Federal level considered
It may not be allowed for collectors to use Facebook, Twitter, Google Plus and LinkedIn to contact customers soon as the Federal Trade Commission and CFPB are looking into stopping abusive practices.
The federal agencies have already laid down rules for debt collection businesses, regulating aggressive rhetoric, making sure consumers are kept updated on any legal actions, and also making it easier for customers to register complaints.
More troubles with financial institutions
Meanwhile, The U.S. Federal Banking institutions Examination Council is urging the public to weigh in on its proposed guidance, seeking to lay down limitations for how banking institutions can use social media in attracting business. To view that guidance, go to:
The Regulations Government Website
The CFPB 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 ton of abuse.
Give you opinion
Anyone who is being harassed by debt collectors should report it to the Federal Trade Commission or Consumer Financial Protection Bureau right away.
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