Federal financial experts are considering ways to limit how debt collectors and banks can use social media in searching for delinquent borrowers or attracting consumers.
Ways to avoid rules
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 networking. 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.
Abuse with social media
However, not every Accounts Receivable Management company has listened to those words.
Attorney Billy Howard spoke with writer Carl Dougherty about the practices 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.'"
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 online websites to contact customers.
The federal agencies have already laid down rules for debt collection companies, regulating aggressive rhetoric, making sure consumers are kept updated on any legal actions, and also making it easier for customers to register complaints.
Financial institutions also in trouble
The Federal Financial institutions Examination Council wants to put more limits on how banking institutions can use social networking, and it wants public opinion on the issue. You can find out more by going to:
The Regulations Government 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 lot of cash and a lot of abuse.
Give you opinion
Anybody who is being harassed by debt collectors should report it to the Federal Trade Commission or CFPB right away.
Ways to avoid rules
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 networking. 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.
Abuse with social media
However, not every Accounts Receivable Management company has listened to those words.
Attorney Billy Howard spoke with writer Carl Dougherty about the practices 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.'"
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 online websites to contact customers.
The federal agencies have already laid down rules for debt collection companies, regulating aggressive rhetoric, making sure consumers are kept updated on any legal actions, and also making it easier for customers to register complaints.
Financial institutions also in trouble
The Federal Financial institutions Examination Council wants to put more limits on how banking institutions can use social networking, and it wants public opinion on the issue. You can find out more by going to:
The Regulations Government 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 lot of cash and a lot of abuse.
Give you opinion
Anybody who is being harassed by debt collectors should report it to the Federal Trade Commission or CFPB right away.
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