Some financial institutions and debt collection agencies are taking to the social networking to locate those who owe or to lure new customers. Experts in Washington are putting a microscope on the methods.
Ways to stay away from rules
The Fair Debt Collections Practices Act does not take a look at the internet or social networking when looking at how collectors can contact consumers. The act was there to set up rules to guard consumers from abusive collectors, but the Internet was never addressed.
The Association of Credit and Collection Professionals is an international trade association that Mark Schiffman is part of. He explained that member corporations should not use social media as the rules are not clear.
Many think social networking should be used
The advice is obviously not required, so many do not listen.
Bloomberg did a piece where they talked to attorney Bill Howard about the debt collector practices.
"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.
Issue on a federal standard
This issue has been noted by the Federal Trade Commission and CFPB. The organizations will choose if collectors can use LinkedIn, Facebook and other social websites to contact customers.
These organizations have already spent a ton of time creating rules to guard customers from aggressive legal practices, so it is not easier for customers to register complaints. New changes have to be made apparently.
Looking at financial institutions more closely
In the meantime, The U.S. Federal Banking 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 networking in attracting business. To view that guidance, go 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 ton of cash and a ton of abuse.
Say what you believe
Customers who feel they are being harassed by debt collectors should report the activity on line or by telephone to the CFPB or the Federal Trade Commission.
Ways to stay away from rules
The Fair Debt Collections Practices Act does not take a look at the internet or social networking when looking at how collectors can contact consumers. The act was there to set up rules to guard consumers from abusive collectors, but the Internet was never addressed.
The Association of Credit and Collection Professionals is an international trade association that Mark Schiffman is part of. He explained that member corporations should not use social media as the rules are not clear.
Many think social networking should be used
The advice is obviously not required, so many do not listen.
Bloomberg did a piece where they talked to attorney Bill Howard about the debt collector practices.
"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.
Issue on a federal standard
This issue has been noted by the Federal Trade Commission and CFPB. The organizations will choose if collectors can use LinkedIn, Facebook and other social websites to contact customers.
These organizations have already spent a ton of time creating rules to guard customers from aggressive legal practices, so it is not easier for customers to register complaints. New changes have to be made apparently.
Looking at financial institutions more closely
In the meantime, The U.S. Federal Banking 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 networking in attracting business. To view that guidance, go 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 ton of cash and a ton of abuse.
Say what you believe
Customers who feel they are being harassed by debt collectors should report the activity on line or by telephone to the CFPB or the Federal Trade Commission.
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