In the wake of stiffer laws, some collectors and financial institutions have turned to the social networking as a way to locate debtors and to drum up new business. However, federal regulators are considering limiting the practice.
Regulations lost
The Fair Debt Collections Practices Act, established more than 30 years back, protects customers from many abusive collection methods. However, those laws were established long before there was such a thing as the Internet or social media. Therefore, the laws 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 corporations should not use social networking because the rules are not clear.
Social networking used by some
The advice is clearly not required, so many do not listen.
Bloomberg did a piece where they talked to lawyer 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.'"
Some say the practice at times borders on stalking or harassment.
Federal level considered
The Consumer Financial Protection Bureau and the Federal Trade Commission are looking into regulating how, or even if, collectors should be legally allowed to pursue debtors on Facebook, Twitter, Google Plus and LinkedIn.
Customers will be able to very easily complain about any problems with rules on debt collection businesses already, but evidently that will need to be expanded.
Checking up on financial 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:
The Regulations Government Website
The Consumer Financial Protection Bureau says there are about 30 million American consumers being pursued by collection companies today. The Accounts Receivable Management industry earns about $12 billion in revenue each year.
Say what you believe
Customers 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.
Regulations lost
The Fair Debt Collections Practices Act, established more than 30 years back, protects customers from many abusive collection methods. However, those laws were established long before there was such a thing as the Internet or social media. Therefore, the laws 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 corporations should not use social networking because the rules are not clear.
Social networking used by some
The advice is clearly not required, so many do not listen.
Bloomberg did a piece where they talked to lawyer 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.'"
Some say the practice at times borders on stalking or harassment.
Federal level considered
The Consumer Financial Protection Bureau and the Federal Trade Commission are looking into regulating how, or even if, collectors should be legally allowed to pursue debtors on Facebook, Twitter, Google Plus and LinkedIn.
Customers will be able to very easily complain about any problems with rules on debt collection businesses already, but evidently that will need to be expanded.
Checking up on financial 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:
The Regulations Government Website
The Consumer Financial Protection Bureau says there are about 30 million American consumers being pursued by collection companies today. The Accounts Receivable Management industry earns about $12 billion in revenue each year.
Say what you believe
Customers 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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