In the wake of stiffer laws, some collectors and banks have turned to the social media as a way to track down debtors and to drum up new business. However, federal experts are looking into restricting the practice.
Regulations lost
There have been a ton of rules protecting consumers from abusive collectors, but they were established over 30 years back. This was long before social networking and the internet when the Fair Debt Collections Practices Act was put together.
The rules are fuzzy, but it is recommended that businesses 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
However, not every Accounts Receivable Management company has heeded those words.
Lawyer 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 believe.
Hearing from federal experts
It may not be allowed for debt 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.
Customers will be able to easily complain about any difficulties with rules on debt collection businesses already, but evidently that will have to be expanded.
More issues with banks
In the meantime, The U.S. Federal Financial institutions Examination Council is urging the public to weigh in on its proposed guidance, seeking to lay down limitations for how banking institutions can use social media in attracting business. To view that guidance, go to:
Their website
The CFPB states there are about 30 million American consumers being pursued by collection firms today. The Accounts Receivable Management industry earns about $12 billion in revenue each year.
Views from all
Consumers 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.
Regulations lost
There have been a ton of rules protecting consumers from abusive collectors, but they were established over 30 years back. This was long before social networking and the internet when the Fair Debt Collections Practices Act was put together.
The rules are fuzzy, but it is recommended that businesses 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
However, not every Accounts Receivable Management company has heeded those words.
Lawyer 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 believe.
Hearing from federal experts
It may not be allowed for debt 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.
Customers will be able to easily complain about any difficulties with rules on debt collection businesses already, but evidently that will have to be expanded.
More issues with banks
In the meantime, The U.S. Federal Financial institutions Examination Council is urging the public to weigh in on its proposed guidance, seeking to lay down limitations for how banking institutions can use social media in attracting business. To view that guidance, go to:
Their website
The CFPB states there are about 30 million American consumers being pursued by collection firms today. The Accounts Receivable Management industry earns about $12 billion in revenue each year.
Views from all
Consumers 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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