Some banking institutions and debt collection agencies are taking to the social media to track down those who owe or to lure new consumers. Regulators in Washington are putting a microscope on the practices.
Social networking slips between regulatory cracks
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 networking and the internet when the Fair Debt Collections Methods 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 obviously not required, so many do not listen.
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.'"
It is close to stalking or harassment, some think.
Federal experts looking at the problem
It may not be allowed for debt collectors to use Facebook, Twitter, Google Plus and LinkedIn to contact customers soon as the Federal Trade Commission and Consumer Financial Protection Bureau are looking into stopping abusive methods.
Consumers will be able to effortlessly complain about any problems with rules on debt collection businesses already, but evidently that will have to be expanded.
Banking institutions also in trouble
There are also ways the public can weigh in on how financial instructions use social networking. 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 lot of abuse.
Do not be afraid to speak up
Everyone who is being harassed by debt collectors should report it to the FTC or CFPB right away.
Social networking slips between regulatory cracks
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 networking and the internet when the Fair Debt Collections Methods 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 obviously not required, so many do not listen.
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.'"
It is close to stalking or harassment, some think.
Federal experts looking at the problem
It may not be allowed for debt collectors to use Facebook, Twitter, Google Plus and LinkedIn to contact customers soon as the Federal Trade Commission and Consumer Financial Protection Bureau are looking into stopping abusive methods.
Consumers will be able to effortlessly complain about any problems with rules on debt collection businesses already, but evidently that will have to be expanded.
Banking institutions also in trouble
There are also ways the public can weigh in on how financial instructions use social networking. 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 lot of abuse.
Do not be afraid to speak up
Everyone who is being harassed by debt collectors should report it to the FTC or CFPB right away.
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