Feds Seek To Limit Debt Collector Use Of Social Media
Some financial institutions and debt collection organizations are taking to the social media to locate those who owe or to lure new consumers. Regulators in Washington are putting a microscope on the methods.
Ways to keep away from rules
The Fair Debt Collections Methods Act, established more than 30 years back, protects consumers from many abusive collection practices. 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 businesses avoid using social media for collection purposes.
Abuse with social networking
However, not every Accounts Receivable Management company has listened to those words.
Attorney Billy Howard spoke with writer Carl Dougherty about the methods of some collectors for a piece 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 believe.
Federal regulators looking at the issue
It may not be permitted for 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 methods.
Consumers will be able to very easily complain about any issues with rules on debt collection companies already, but apparently that will need to be expanded.
Banks, financial institutions also under microscope
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 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 ton of cash and a ton of abuse.
Give you opinion
Get a hold of the CFPB for Federal Trade Commission if you feel you have been harassed by debt collectors.
Ways to keep away from rules
The Fair Debt Collections Methods Act, established more than 30 years back, protects consumers from many abusive collection practices. 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 businesses avoid using social media for collection purposes.
Abuse with social networking
However, not every Accounts Receivable Management company has listened to those words.
Attorney Billy Howard spoke with writer Carl Dougherty about the methods of some collectors for a piece 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 believe.
Federal regulators looking at the issue
It may not be permitted for 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 methods.
Consumers will be able to very easily complain about any issues with rules on debt collection companies already, but apparently that will need to be expanded.
Banks, financial institutions also under microscope
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 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 ton of cash and a ton of abuse.
Give you opinion
Get a hold of the CFPB for Federal Trade Commission if you feel you have been harassed by debt collectors.
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