Federal financial experts are considering ways to limit how debt collectors and banks can use social media in searching for delinquent debtors or attracting consumers.
Rules mean nothing with social networking
There have been a ton of rules safeguarding consumers 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 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.
Social networking used by some
The advice is certainly not required, so many do not listen.
Lawyer Billy Howard spoke with writer Carl Dougherty about the practices of some debt 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.
Issue on a federal standard
This issue has been noted by the Federal Trade Commission and Consumer Financial Protection Bureau. The agencies will decide if collectors can use LinkedIn, Facebook and other social sites to contact customers.
Customers will be able to very easily complain about any issues with rules on debt collection businesses already, but apparently that will have to be expanded.
More troubles with banks
There are also ways the public can weigh in on how financial instructions use social media. This is something the Federal Financial institutions Examination Council is looking at and wants public opinion. Go to:
Their 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 ton of cash and a ton of abuse.
State what you believe
Get a hold of the Consumer Financial Protection Bureau for Federal Trade Commission if you feel you have been harassed by debt collectors.
Rules mean nothing with social networking
There have been a ton of rules safeguarding consumers 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 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.
Social networking used by some
The advice is certainly not required, so many do not listen.
Lawyer Billy Howard spoke with writer Carl Dougherty about the practices of some debt 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.
Issue on a federal standard
This issue has been noted by the Federal Trade Commission and Consumer Financial Protection Bureau. The agencies will decide if collectors can use LinkedIn, Facebook and other social sites to contact customers.
Customers will be able to very easily complain about any issues with rules on debt collection businesses already, but apparently that will have to be expanded.
More troubles with banks
There are also ways the public can weigh in on how financial instructions use social media. This is something the Federal Financial institutions Examination Council is looking at and wants public opinion. Go to:
Their 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 ton of cash and a ton of abuse.
State what you believe
Get a hold of the Consumer Financial Protection Bureau for Federal Trade Commission if you feel you have been harassed by debt collectors.
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