Federal financial experts are looking into ways to limit how debt collectors and financial institutions can use social media in searching for delinquent debtors or attracting consumers.
Regulations lost
The Fair Debt Collections Practices Act, established more than 30 years ago, protects customers from many abusive collection practices. However, those laws were established long before there was such a thing as the Internet or social media. Therefore, the rules 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 companies stay away from using social networking for collection purposes.
Social networking used by some
The advice is certainly not required, so many do not listen.
The methods were discussed by lawyer 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 think.
Hearing from federal experts
The CFPB 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 agencies have already spent a ton of time making rules to defend consumers from aggressive legal practices, so it is not easier for customers to register complaints. New changes have to be made apparently.
Looking at banks more closely
There are also ways the public can weigh in on how financial instructions use social media. This is something the Federal Financial 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 CFPB.
Say what you believe
Any person who is being harassed by debt collectors should report it to the FTC or CFPB right away.
Regulations lost
The Fair Debt Collections Practices Act, established more than 30 years ago, protects customers from many abusive collection practices. However, those laws were established long before there was such a thing as the Internet or social media. Therefore, the rules 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 companies stay away from using social networking for collection purposes.
Social networking used by some
The advice is certainly not required, so many do not listen.
The methods were discussed by lawyer 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 think.
Hearing from federal experts
The CFPB 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 agencies have already spent a ton of time making rules to defend consumers from aggressive legal practices, so it is not easier for customers to register complaints. New changes have to be made apparently.
Looking at banks more closely
There are also ways the public can weigh in on how financial instructions use social media. This is something the Federal Financial 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 CFPB.
Say what you believe
Any person who is being harassed by debt collectors should report it to the FTC or CFPB right away.
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