Some financial institutions and debt collection organizations are taking to the social media to track down those who owe or to lure brand new consumers. Regulators in Washington are putting a microscope on the practices.
Ways to stay away from rules
There have been a lot of rules protecting consumers 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 Practices Act was put together.
Mark Schiffman of the Association of Credit and Collection Professionals, an international trade association of debt collection firms, said "the rules on it are not clear," while recommending its member companies keep away from using social media for collection purposes.
Many think social networking should be used
Not every collector listens to the advice.
Bloomberg did a piece where they talked to attorney Bill Howard about the 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.'"
Some say the practice at times borders on stalking or harassment.
Federal level considered
This problem has been noted by the Federal Trade Commission and Consumer Financial Protection Bureau. The organizations will decide if collectors can use LinkedIn, Facebook and other social sites to contact consumers.
Customers will be able to easily complain about any difficulties with rules on debt collection companies already, but apparently that will have to be expanded.
Banks, financial institutions also under microscope
The Federal Financial 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 get more information by going to:
Their website
The CFPB says there are about 30 million American customers being pursued by collection companies today. The Accounts Receivable Management industry earns about $12 billion in revenue each year.
Say what you believe
Get a hold of the Consumer Financial Protection Bureau for FTC if you feel you have been harassed by debt collectors.
Ways to stay away from rules
There have been a lot of rules protecting consumers 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 Practices Act was put together.
Mark Schiffman of the Association of Credit and Collection Professionals, an international trade association of debt collection firms, said "the rules on it are not clear," while recommending its member companies keep away from using social media for collection purposes.
Many think social networking should be used
Not every collector listens to the advice.
Bloomberg did a piece where they talked to attorney Bill Howard about the 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.'"
Some say the practice at times borders on stalking or harassment.
Federal level considered
This problem has been noted by the Federal Trade Commission and Consumer Financial Protection Bureau. The organizations will decide if collectors can use LinkedIn, Facebook and other social sites to contact consumers.
Customers will be able to easily complain about any difficulties with rules on debt collection companies already, but apparently that will have to be expanded.
Banks, financial institutions also under microscope
The Federal Financial 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 get more information by going to:
Their website
The CFPB says there are about 30 million American customers being pursued by collection companies today. The Accounts Receivable Management industry earns about $12 billion in revenue each year.
Say what you believe
Get a hold of the Consumer Financial Protection Bureau for FTC if you feel you have been harassed by debt collectors.
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