Some financial institutions and debt collection agencies are taking to the social media to locate those who owe or to lure new customers. Experts in Washington are putting a microscope on the practices.
Rules mean nothing with social media
There have been a lot of rules protecting customers from abusive collectors, but they were established over 30 years back. This was long before social media and the internet when the Fair Debt Collections Practices Act was put together.
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 as the rules are not clear.
Many think social networking should be used
However, not every Accounts Receivable Management business has listened to those words.
The methods were discussed by attorney Billy Howard 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.
Federal level considered
It may not be permitted 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.
The federal organizations have already laid down rules for debt collection companies, regulating aggressive rhetoric, making sure customers are kept updated on any legal actions, and also making it easier for customers to register grievances.
Looking at financial institutions more closely
The Federal Banking institutions Examination Council wants to put more limits on how financial institutions can use social media, and it wants public opinion on the issue. You can find out 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 consumers are pursued by companies right now, according to the Consumer Financial Protection Bureau.
Don't be afraid to speak up
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.
Rules mean nothing with social media
There have been a lot of rules protecting customers from abusive collectors, but they were established over 30 years back. This was long before social media and the internet when the Fair Debt Collections Practices Act was put together.
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 as the rules are not clear.
Many think social networking should be used
However, not every Accounts Receivable Management business has listened to those words.
The methods were discussed by attorney Billy Howard 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.
Federal level considered
It may not be permitted 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.
The federal organizations have already laid down rules for debt collection companies, regulating aggressive rhetoric, making sure customers are kept updated on any legal actions, and also making it easier for customers to register grievances.
Looking at financial institutions more closely
The Federal Banking institutions Examination Council wants to put more limits on how financial institutions can use social media, and it wants public opinion on the issue. You can find out 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 consumers are pursued by companies right now, according to the Consumer Financial Protection Bureau.
Don't be afraid to speak up
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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