Federal financial experts are looking into ways to limit how collectors and banks can use social media in tracking down delinquent borrowers or attracting customers.
Getting past all the laws
There have been a lot of rules protecting consumers from abusive collectors, but they were established over 30 years ago. 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 corporations 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.
Many think social networking should be used
Not every collector listens to the advice.
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.'"
Many believe that this is way too close to harassment and may even be considered stalking.
Issue on a federal standard
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 Consumer Financial Protection Bureau are looking into stopping abusive practices.
The federal agencies 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 customers to register complaints.
Looking at financial institutions more closely
In the meantime, The United States Federal Financial 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:
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 lot of cash and a lot of abuse.
Do not be afraid to speak up
Consumers 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.
Getting past all the laws
There have been a lot of rules protecting consumers from abusive collectors, but they were established over 30 years ago. 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 corporations 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.
Many think social networking should be used
Not every collector listens to the advice.
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.'"
Many believe that this is way too close to harassment and may even be considered stalking.
Issue on a federal standard
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 Consumer Financial Protection Bureau are looking into stopping abusive practices.
The federal agencies 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 customers to register complaints.
Looking at financial institutions more closely
In the meantime, The United States Federal Financial 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:
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 lot of cash and a lot of abuse.
Do not be afraid to speak up
Consumers 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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