Some financial institutions and debt collection organizations are taking to the social networking to track down those who owe or to lure new customers. Experts in Washington are putting a microscope on the practices.
Social networking slips between regulatory cracks
The Fair Debt Collections Methods Act does not check out 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 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 media as the rules are not clear.
Some collectors use social media
Not every debt collector listens to the advice.
Attorney Billy Howard spoke with author Carl Dougherty about the practices 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 think.
Hearing from federal regulators
The Consumer Financial Protection Bureau and the Federal Trade Commission are looking into regulating how, or even if, debt collectors should be legally allowed to pursue debtors on Facebook, Twitter, Google Plus and LinkedIn.
Customers will be able to easily complain about any problems with rules on debt collection businesses already, but evidently that will have to be expanded.
Banking institutions also in trouble
The Federal Financial institutions Examination Council wants to put more limits on how banking institutions can use social networking, and it wants public opinion on the issue. You can learn 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 customers 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.
Social networking slips between regulatory cracks
The Fair Debt Collections Methods Act does not check out 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 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 media as the rules are not clear.
Some collectors use social media
Not every debt collector listens to the advice.
Attorney Billy Howard spoke with author Carl Dougherty about the practices 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 think.
Hearing from federal regulators
The Consumer Financial Protection Bureau and the Federal Trade Commission are looking into regulating how, or even if, debt collectors should be legally allowed to pursue debtors on Facebook, Twitter, Google Plus and LinkedIn.
Customers will be able to easily complain about any problems with rules on debt collection businesses already, but evidently that will have to be expanded.
Banking institutions also in trouble
The Federal Financial institutions Examination Council wants to put more limits on how banking institutions can use social networking, and it wants public opinion on the issue. You can learn 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 customers 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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