Federal financial regulators are considering ways to limit how debt collectors and banks can use social media in searching for delinquent borrowers or attracting customers.
Ways to keep away from rules
The Fair Debt Collections Practices Act, established more than 30 years back, protects customers from many abusive collection practices. However, those laws were established long before there was such a thing as the Internet or social networking. Therefore, the rules 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 companies should not use social networking since the rules are not clear.
Abuse with social networking
Not every debt collector listens to the advice.
The methods 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.
Federal regulators looking at the issue
It may not be allowed for collectors to use Facebook, Twitter, Google Plus and LinkedIn to contact consumers soon as the Federal Trade Commission and CFPB are looking into stopping abusive practices.
The federal agencies have already laid down rules for debt collection businesses, regulating aggressive rhetoric, making sure customers are kept updated on any legal actions, and also making it easier for consumers to register grievances.
Banking institutions also in trouble
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
About $12 billion in revenue is received by the Accounts Receivable Management industry every year while 30 million American customers are pursued by firms right now, according to the Consumer Financial Protection Bureau.
Give you opinion
Anyone who is being harassed by debt collectors should report it to the Federal Trade Commission or CFPB right away.
Ways to keep away from rules
The Fair Debt Collections Practices Act, established more than 30 years back, protects customers from many abusive collection practices. However, those laws were established long before there was such a thing as the Internet or social networking. Therefore, the rules 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 companies should not use social networking since the rules are not clear.
Abuse with social networking
Not every debt collector listens to the advice.
The methods 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.
Federal regulators looking at the issue
It may not be allowed for collectors to use Facebook, Twitter, Google Plus and LinkedIn to contact consumers soon as the Federal Trade Commission and CFPB are looking into stopping abusive practices.
The federal agencies have already laid down rules for debt collection businesses, regulating aggressive rhetoric, making sure customers are kept updated on any legal actions, and also making it easier for consumers to register grievances.
Banking institutions also in trouble
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
About $12 billion in revenue is received by the Accounts Receivable Management industry every year while 30 million American customers are pursued by firms right now, according to the Consumer Financial Protection Bureau.
Give you opinion
Anyone who is being harassed by debt collectors should report it to the Federal Trade Commission or CFPB right away.
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