In the wake of stiffer regulations, some collectors and banks have turned to the social networking as a way to track down debtors and to drum up brand new business. However, federal regulators are looking into restricting the practice.
Regulations lost
The Fair Debt Collections Methods Act, established more than 30 years back, protects consumers from many abusive collection practices. However, those regulations were established long before there was such a thing as the Internet or social media. Therefore, the laws have been spongy on the matter.
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 businesses keep away from using social networking for collection purposes.
Some collectors use social media
However, not every Accounts Receivable Management company has listened to those words.
Attorney Billy Howard spoke with author Carl Dougherty about the methods 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 experts looking at the issue
The CFPB and the Federal Trade Commission are looking into regulating how, or even if, debt collectors should be legally allowed to pursue debtors on Facebook, Twitter, Google Plus and LinkedIn.
The federal agencies 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 grievances.
Checking up on financial institutions
There are also ways the public can weigh in on how financial instructions use social media. This is something the Federal Banking institutions Examination Council is looking at and wants public opinion. 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 ton of cash and a lot of abuse.
Speak your mind
Any person who is being harassed by debt collectors should report it to the FTC or Consumer Financial Protection Bureau right away.
Regulations lost
The Fair Debt Collections Methods Act, established more than 30 years back, protects consumers from many abusive collection practices. However, those regulations were established long before there was such a thing as the Internet or social media. Therefore, the laws have been spongy on the matter.
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 businesses keep away from using social networking for collection purposes.
Some collectors use social media
However, not every Accounts Receivable Management company has listened to those words.
Attorney Billy Howard spoke with author Carl Dougherty about the methods 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 experts looking at the issue
The CFPB and the Federal Trade Commission are looking into regulating how, or even if, debt collectors should be legally allowed to pursue debtors on Facebook, Twitter, Google Plus and LinkedIn.
The federal agencies 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 grievances.
Checking up on financial institutions
There are also ways the public can weigh in on how financial instructions use social media. This is something the Federal Banking institutions Examination Council is looking at and wants public opinion. 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 ton of cash and a lot of abuse.
Speak your mind
Any person who is being harassed by debt collectors should report it to the FTC or Consumer Financial Protection Bureau right away.
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