Federal financial regulators are considering ways to limit how collectors and financial institutions can use social media in tracking down delinquent debtors or attracting customers.
Ways to stay away from rules
There have been a ton of rules safeguarding customers from abusive collectors, but they were established over 30 years ago. This was long before social networking and the internet when the Fair Debt Collections Methods Act was put together.
The Association of Credit and Collection Professionals is an international trade association that Mark Schiffman is part of. He explained that member businesses should not use social networking since the rules are not clear.
Some collectors use social media
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.
Federal level considered
The Consumer Financial Protection Bureau and the Federal Trade Commission are looking into regulating how, or even if, collectors should be legally allowed to pursue debtors on Facebook, Twitter, Google Plus and LinkedIn.
These organizations have already spent a lot of time creating rules to protect consumers from aggressive legal methods, so it is not easier for consumers to register complaints. Brand new changes have to be made apparently.
Looking at banks more closely
Meanwhile, 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 media in attracting business. To view that guidance, go to:
Their website
About $12 billion in revenue is received by the Accounts Receivable Management industry each year while 30 million American customers are pursued by firms right now, according to the CFPB.
Speak your mind
Get a hold of the Consumer Financial Protection Bureau for Federal Trade Commission if you feel you have been harassed by debt collectors.
Ways to stay away from rules
There have been a ton of rules safeguarding customers from abusive collectors, but they were established over 30 years ago. This was long before social networking and the internet when the Fair Debt Collections Methods Act was put together.
The Association of Credit and Collection Professionals is an international trade association that Mark Schiffman is part of. He explained that member businesses should not use social networking since the rules are not clear.
Some collectors use social media
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.
Federal level considered
The Consumer Financial Protection Bureau and the Federal Trade Commission are looking into regulating how, or even if, collectors should be legally allowed to pursue debtors on Facebook, Twitter, Google Plus and LinkedIn.
These organizations have already spent a lot of time creating rules to protect consumers from aggressive legal methods, so it is not easier for consumers to register complaints. Brand new changes have to be made apparently.
Looking at banks more closely
Meanwhile, 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 media in attracting business. To view that guidance, go to:
Their website
About $12 billion in revenue is received by the Accounts Receivable Management industry each year while 30 million American customers are pursued by firms right now, according to the CFPB.
Speak your mind
Get a hold of the Consumer Financial Protection Bureau for Federal Trade Commission if you feel you have been harassed by debt collectors.
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