In the wake of stiffer regulations, some 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 considering limiting the practice.
Rules mean nothing with social networking
There have been a lot of rules protecting consumers from abusive collectors, but they were established over 30 years back. 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 corporations that are part of the Association of Credit and Collection Professionals do not use social media for collection, according to Mark Schiffman of the trade association.
Some collectors use social networking
The advice is definitely not required, so many do not listen.
Bloomberg did a piece where they talked to lawyer Bill Howard about the debt 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
It may not be allowed for debt collectors to use Facebook, Twitter, Google Plus and LinkedIn to contact consumers soon as the Federal Trade Commission and CFPB are looking into stopping abusive practices.
Consumers will be able to very easily complain about any problems with rules on debt collection companies already, but evidently that will need to be expanded.
Financial institutions also in trouble
The Federal Banking 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 learn more by going to:
The Regulations Government Website
About $12 billion in revenue is received by the Accounts Receivable Management industry each year while 30 million American customers are pursued by firms right now, according to the CFPB.
Speak your mind
Anyone who is being harassed by debt collectors should report it to the Federal Trade Commission or CFPB right away.
Rules mean nothing with social networking
There have been a lot of rules protecting consumers from abusive collectors, but they were established over 30 years back. 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 corporations that are part of the Association of Credit and Collection Professionals do not use social media for collection, according to Mark Schiffman of the trade association.
Some collectors use social networking
The advice is definitely not required, so many do not listen.
Bloomberg did a piece where they talked to lawyer Bill Howard about the debt 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
It may not be allowed for debt collectors to use Facebook, Twitter, Google Plus and LinkedIn to contact consumers soon as the Federal Trade Commission and CFPB are looking into stopping abusive practices.
Consumers will be able to very easily complain about any problems with rules on debt collection companies already, but evidently that will need to be expanded.
Financial institutions also in trouble
The Federal Banking 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 learn more by going to:
The Regulations Government Website
About $12 billion in revenue is received by the Accounts Receivable Management industry each year while 30 million American customers are pursued by firms right now, according to the CFPB.
Speak your mind
Anyone who is being harassed by debt collectors should report it to the Federal Trade Commission or CFPB right away.
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