Federal financial experts are considering ways to limit how collectors and financial institutions can use social networking in tracking down delinquent debtors or attracting customers.
Laws lost
The Fair Debt Collections Practices Act does not take a look at the internet or social networking when looking at how collectors can contact customers. The act was there to set up rules to defend consumers 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 media for collection, according to Mark Schiffman of the trade association.
Some debt collectors use social media
The advice is certainly not required, so many do not listen.
The practices 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.'"
It is close to stalking or harassment, some think.
Problem on a federal standard
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.
These organizations have already spent a lot of time producing rules to shield customers from aggressive legal practices, so it is not easier for consumers to register complaints. Brand new changes need to be made apparently.
Checking up on banking institutions
There are also ways the public can weigh in on how financial instructions use social media. This is something the Federal Banking institutions Examination Council is looking at and wants public opinion. Go to:
Their website
The Consumer Financial Protection Bureau claims there are about 30 million American customers being pursued by collection firms today. The Accounts Receivable Management industry earns about $12 billion in revenue each year.
Do not be afraid to speak up
Anyone who is being harassed by debt collectors should report it to the FTC or CFPB right away.
Laws lost
The Fair Debt Collections Practices Act does not take a look at the internet or social networking when looking at how collectors can contact customers. The act was there to set up rules to defend consumers 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 media for collection, according to Mark Schiffman of the trade association.
Some debt collectors use social media
The advice is certainly not required, so many do not listen.
The practices 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.'"
It is close to stalking or harassment, some think.
Problem on a federal standard
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.
These organizations have already spent a lot of time producing rules to shield customers from aggressive legal practices, so it is not easier for consumers to register complaints. Brand new changes need to be made apparently.
Checking up on banking institutions
There are also ways the public can weigh in on how financial instructions use social media. This is something the Federal Banking institutions Examination Council is looking at and wants public opinion. Go to:
Their website
The Consumer Financial Protection Bureau claims there are about 30 million American customers being pursued by collection firms today. The Accounts Receivable Management industry earns about $12 billion in revenue each year.
Do not be afraid to speak up
Anyone who is being harassed by debt collectors should report it to the FTC or CFPB right away.
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