Some banking institutions and debt collection agencies are taking to the social networking to track down those who owe or to lure brand new consumers. Regulators in Washington are putting a microscope on the methods.
Social networking slips between regulatory cracks
There have been a ton of rules protecting 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 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 businesses should not use social media as the rules are not clear.
Some collectors use social media
However, not every Accounts Receivable Management business has listened to those words.
Bloomberg did a piece where they talked to attorney Bill Howard about the debt collector practices.
"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.'"
Many believe that this is way too close to harassment and may even be considered stalking.
Looking at the issue
The CFPB 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 effortlessly complain about any issues with rules on debt collection businesses already, but apparently that will need to be expanded.
Financial institutions, financial institutions also under microscope
There are also ways the public can weigh in on how financial instructions use social networking. This is something the Federal Financial institutions Examination Council is looking at and wants public opinion. Go to:
The Regulations Government 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 lot of abuse.
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.
Social networking slips between regulatory cracks
There have been a ton of rules protecting 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 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 businesses should not use social media as the rules are not clear.
Some collectors use social media
However, not every Accounts Receivable Management business has listened to those words.
Bloomberg did a piece where they talked to attorney Bill Howard about the debt collector practices.
"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.'"
Many believe that this is way too close to harassment and may even be considered stalking.
Looking at the issue
The CFPB 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 effortlessly complain about any issues with rules on debt collection businesses already, but apparently that will need to be expanded.
Financial institutions, financial institutions also under microscope
There are also ways the public can weigh in on how financial instructions use social networking. This is something the Federal Financial institutions Examination Council is looking at and wants public opinion. Go to:
The Regulations Government 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 lot of abuse.
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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