In the wake of stiffer laws, some debt collectors and banks have turned to the social networking as a way to track down debtors and to drum up new business. However, federal experts are considering limiting the practice.
Ways to keep away from rules
The Fair Debt Collections Practices Act, established more than 30 years ago, protects customers from many abusive collection practices. However, those laws were established long before there was such a thing as the Internet or social media. Therefore, the laws have been spongy on the matter.
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 media as the rules are not clear.
Abuse with social networking
However, not every Accounts Receivable Management company has heeded those words.
Lawyer Billy Howard spoke with writer Carl Dougherty about the practices of some 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.'"
Many think that this is way too close to harassment and may even be considered stalking.
Federal level considered
The CFPB and the Federal Trade Commission are looking into regulating how, or even if, collectors should be legally allowed to pursue debtors on Facebook, Twitter, Google Plus and LinkedIn.
The federal organizations have already laid down rules for debt collection businesses, regulating aggressive rhetoric, making sure consumers are kept updated on any legal actions, and also making it easier for consumers to register complaints.
More difficulties with banks
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 banking institutions can use social media in attracting business. To view that guidance, go to:
Their website
The Consumer Financial Protection Bureau states there are about 30 million American customers being pursued by collection firms today. The Accounts Receivable Management industry earns about $12 billion in revenue each year.
Give you opinion
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 keep away from rules
The Fair Debt Collections Practices Act, established more than 30 years ago, protects customers from many abusive collection practices. However, those laws were established long before there was such a thing as the Internet or social media. Therefore, the laws have been spongy on the matter.
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 media as the rules are not clear.
Abuse with social networking
However, not every Accounts Receivable Management company has heeded those words.
Lawyer Billy Howard spoke with writer Carl Dougherty about the practices of some 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.'"
Many think that this is way too close to harassment and may even be considered stalking.
Federal level considered
The CFPB and the Federal Trade Commission are looking into regulating how, or even if, collectors should be legally allowed to pursue debtors on Facebook, Twitter, Google Plus and LinkedIn.
The federal organizations have already laid down rules for debt collection businesses, regulating aggressive rhetoric, making sure consumers are kept updated on any legal actions, and also making it easier for consumers to register complaints.
More difficulties with banks
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 banking institutions can use social media in attracting business. To view that guidance, go to:
Their website
The Consumer Financial Protection Bureau states there are about 30 million American customers being pursued by collection firms today. The Accounts Receivable Management industry earns about $12 billion in revenue each year.
Give you opinion
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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