Federal financial regulators are looking into ways to limit how collectors and banks can use social media in tracking down delinquent borrowers or attracting consumers.
Rules mean nothing with social networking
The Fair Debt Collections Practices Act does not check out the internet or social media when looking at how collectors can contact consumers. The act was there to set up rules to defend 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 companies should not use social media because the rules are not clear.
Social networking used by some
However, not every Accounts Receivable Management company has listened to those words.
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.'"
It is close to stalking or harassment, some believe.
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 online websites to contact customers.
The federal organizations 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 consumers to register grievances.
Checking up on banking institutions
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 get more information by going to:
The Regulations Government Website
The CFPB states there are about 30 million American consumers being pursued by collection firms today. The Accounts Receivable Management industry earns about $12 billion in revenue each year.
Don't be afraid to speak up
Any person who is being harassed by debt collectors should report it to the Federal Trade Commission or Consumer Financial Protection Bureau right away.
Rules mean nothing with social networking
The Fair Debt Collections Practices Act does not check out the internet or social media when looking at how collectors can contact consumers. The act was there to set up rules to defend 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 companies should not use social media because the rules are not clear.
Social networking used by some
However, not every Accounts Receivable Management company has listened to those words.
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.'"
It is close to stalking or harassment, some believe.
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 online websites to contact customers.
The federal organizations 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 consumers to register grievances.
Checking up on banking institutions
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 get more information by going to:
The Regulations Government Website
The CFPB states there are about 30 million American consumers being pursued by collection firms today. The Accounts Receivable Management industry earns about $12 billion in revenue each year.
Don't be afraid to speak up
Any person who is being harassed by debt collectors should report it to the Federal Trade Commission or Consumer Financial Protection Bureau right away.
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