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. Experts in Washington are putting a microscope on the practices.
Ways to avoid rules
There have been a lot of rules guarding customers 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 Methods 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 companies should not use social networking as the rules are not clear.
Social networking used by some
However, not every Accounts Receivable Management business has heeded those words.
The practices 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.'"
It is close to stalking or harassment, some believe.
Federal experts looking at the problem
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 practices.
The federal organizations have already laid down rules for debt collection companies, regulating aggressive rhetoric, making sure consumers are kept updated on any legal actions, and also making it easier for consumers to register grievances.
Financial institutions, financial institutions also under microscope
Meanwhile, The United States Federal Banking institutions Examination Council is urging the public to weigh in on its proposed guidance, seeking to lay down limitations for how financial institutions can use social networking in attracting business. To view that guidance, go 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 CFPB.
Say what you think
Get a hold of the Consumer Financial Protection Bureau for Federal Trade Commission if you feel you have been harassed by debt collectors.
Ways to avoid rules
There have been a lot of rules guarding customers 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 Methods 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 companies should not use social networking as the rules are not clear.
Social networking used by some
However, not every Accounts Receivable Management business has heeded those words.
The practices 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.'"
It is close to stalking or harassment, some believe.
Federal experts looking at the problem
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 practices.
The federal organizations have already laid down rules for debt collection companies, regulating aggressive rhetoric, making sure consumers are kept updated on any legal actions, and also making it easier for consumers to register grievances.
Financial institutions, financial institutions also under microscope
Meanwhile, The United States Federal Banking institutions Examination Council is urging the public to weigh in on its proposed guidance, seeking to lay down limitations for how financial institutions can use social networking in attracting business. To view that guidance, go 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 CFPB.
Say what you think
Get a hold of the Consumer Financial Protection Bureau for Federal Trade Commission if you feel you have been harassed by debt collectors.
About the Author:
How many times have you needed addiitional information on where to findpayday loans instant approval and turned to an online search on short terms loans?" Your search is over, all of the details you'll need is at MatchFinancial.