Federal financial experts are looking into ways to limit how collectors and financial institutions can use social networking in tracking down delinquent borrowers or attracting customers.
Rules mean nothing with social networking
There have been a lot of rules safeguarding consumers from abusive collectors, but they were established over 30 years ago. This was long before social networking and the internet when the Fair Debt Collections Methods Act was put together.
The rules are fuzzy, but it is recommended that corporations that are part of the Association of Credit and Collection Professionals do not use social networking for collection, according to Mark Schiffman of the trade association.
Some collectors use social networking
However, not every Accounts Receivable Management business has listened to those words.
Attorney Billy Howard spoke with writer 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.'"
Some say the practice at times borders on stalking or harassment.
Looking at the issue
This problem has been noted by the Federal Trade Commission and CFPB. The agencies will choose if collectors can use LinkedIn, Facebook and other social sites to contact consumers.
These agencies have already spent a lot of time producing rules to defend customers from aggressive legal methods, so it is not easier for consumers to register grievances. Brand new changes need to be made apparently.
Looking at financial institutions more closely
The Federal Banking 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 find out more by going to:
The Regulations Government Website
The Consumer Financial Protection Bureau 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 lot of cash and a lot of abuse.
Don't be afraid to speak up
Anyone who is being harassed by debt collectors should report it to the FTC or CFPB right away.
Rules mean nothing with social networking
There have been a lot of rules safeguarding consumers from abusive collectors, but they were established over 30 years ago. This was long before social networking and the internet when the Fair Debt Collections Methods Act was put together.
The rules are fuzzy, but it is recommended that corporations that are part of the Association of Credit and Collection Professionals do not use social networking for collection, according to Mark Schiffman of the trade association.
Some collectors use social networking
However, not every Accounts Receivable Management business has listened to those words.
Attorney Billy Howard spoke with writer 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.'"
Some say the practice at times borders on stalking or harassment.
Looking at the issue
This problem has been noted by the Federal Trade Commission and CFPB. The agencies will choose if collectors can use LinkedIn, Facebook and other social sites to contact consumers.
These agencies have already spent a lot of time producing rules to defend customers from aggressive legal methods, so it is not easier for consumers to register grievances. Brand new changes need to be made apparently.
Looking at financial institutions more closely
The Federal Banking 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 find out more by going to:
The Regulations Government Website
The Consumer Financial Protection Bureau 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 lot of cash and a lot of abuse.
Don't 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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