Federal financial experts are considering ways to limit how collectors and banks can use social networking in searching for delinquent debtors or attracting consumers.
Rules mean nothing with social networking
There have been a lot of rules safeguarding customers 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 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 networking for collection, according to Mark Schiffman of the trade association.
Abuse with social networking
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.'"
Some say the practice at times borders on stalking or harassment.
Federal level considered
This issue has been noted by the Federal Trade Commission and CFPB. The agencies will choose if collectors can use LinkedIn, Facebook and other social websites to contact consumers.
Customers will be able to very easily complain about any issues with rules on debt collection businesses already, but apparently that will have to be expanded.
Looking at financial institutions more closely
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:
Their website
About $12 billion in revenue is received by the Accounts Receivable Management industry annually while 30 million American consumers are pursued by companies right now, according to the Consumer Financial Protection Bureau.
Give you opinion
Customers 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.
Rules mean nothing with social networking
There have been a lot of rules safeguarding customers 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 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 networking for collection, according to Mark Schiffman of the trade association.
Abuse with social networking
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.'"
Some say the practice at times borders on stalking or harassment.
Federal level considered
This issue has been noted by the Federal Trade Commission and CFPB. The agencies will choose if collectors can use LinkedIn, Facebook and other social websites to contact consumers.
Customers will be able to very easily complain about any issues with rules on debt collection businesses already, but apparently that will have to be expanded.
Looking at financial institutions more closely
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:
Their website
About $12 billion in revenue is received by the Accounts Receivable Management industry annually while 30 million American consumers are pursued by companies right now, according to the Consumer Financial Protection Bureau.
Give you opinion
Customers 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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