Some financial institutions and debt collection organizations are taking to the social media to track down those who owe or to lure brand new consumers. Experts in Washington are putting a microscope on the methods.
Ways to keep away from rules
The Fair Debt Collections Practices Act, established more than 30 years back, protects consumers from many abusive collection methods. However, those regulations were established long before there was such a thing as the Internet or social networking. Therefore, the laws have been spongy on the matter.
Mark Schiffman of the Association of Credit and Collection Professionals, an international trade association of debt collection companies, said "the rules on it are not clear," while recommending its member corporations keep away from using social media for collection purposes.
Abuse with social networking
The advice is definitely not required, so many do not listen.
Bloomberg did a piece where they talked to attorney Bill Howard about the 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 think.
Federal level considered
It may not be permitted for debt collectors to use Facebook, Twitter, Google Plus and LinkedIn to contact customers soon as the Federal Trade Commission and Consumer Financial Protection Bureau are looking into stopping abusive practices.
These agencies have already spent a ton of time producing rules to shield consumers from aggressive legal practices, so it is not easier for customers to register complaints. Brand new changes have to be made apparently.
Looking at banks more closely
The Federal Financial institutions Examination Council wants to put more limits on how banking institutions can use social media, and it wants public opinion on the issue. You can find out more by going to:
Their website
About $12 billion in revenue is received by the Accounts Receivable Management industry every year while 30 million American consumers are pursued by firms right now, according to the CFPB.
Speak your mind
Customers who feel they are being harassed by debt collectors should report the activity on line or by telephone to the Consumer Financial Protection Bureau or the Federal Trade Commission.
Ways to keep away from rules
The Fair Debt Collections Practices Act, established more than 30 years back, protects consumers from many abusive collection methods. However, those regulations were established long before there was such a thing as the Internet or social networking. Therefore, the laws have been spongy on the matter.
Mark Schiffman of the Association of Credit and Collection Professionals, an international trade association of debt collection companies, said "the rules on it are not clear," while recommending its member corporations keep away from using social media for collection purposes.
Abuse with social networking
The advice is definitely not required, so many do not listen.
Bloomberg did a piece where they talked to attorney Bill Howard about the 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 think.
Federal level considered
It may not be permitted for debt collectors to use Facebook, Twitter, Google Plus and LinkedIn to contact customers soon as the Federal Trade Commission and Consumer Financial Protection Bureau are looking into stopping abusive practices.
These agencies have already spent a ton of time producing rules to shield consumers from aggressive legal practices, so it is not easier for customers to register complaints. Brand new changes have to be made apparently.
Looking at banks more closely
The Federal Financial institutions Examination Council wants to put more limits on how banking institutions can use social media, and it wants public opinion on the issue. You can find out more by going to:
Their website
About $12 billion in revenue is received by the Accounts Receivable Management industry every year while 30 million American consumers are pursued by firms right now, according to the CFPB.
Speak your mind
Customers who feel they are being harassed by debt collectors should report the activity on line or by telephone to the Consumer Financial Protection Bureau or the Federal Trade Commission.
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