In the wake of stiffer laws, some collectors and financial institutions have turned to the social networking as a way to track down debtors and to drum up brand new business. However, federal experts are looking into restricting the practice.
Ways to avoid rules
There have been a ton of rules safeguarding customers from abusive collectors, but they were established over 30 years back. This was long before social media and the internet when the Fair Debt Collections Methods Act was put together.
The rules are fuzzy, but it is recommended that businesses that are part of the Association of Credit and Collection Professionals do not use social media for collection, according to Mark Schiffman of the trade association.
Abuse with social media
The advice is clearly not required, so many do not listen.
Bloomberg did a piece where they talked to attorney Bill Howard about the debt collector methods.
"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.
Hearing from federal regulators
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 websites to contact consumers.
The federal agencies have already laid down rules for debt collection companies, regulating aggressive rhetoric, making sure customers are kept updated on any legal actions, and also making it easier for consumers to register grievances.
Checking up on banking institutions
The Federal Banking 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 learn more by going to:
Their 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.
Opinions from all
Anyone who is being harassed by debt collectors should report it to the FTC or CFPB right away.
Ways to avoid rules
There have been a ton of rules safeguarding customers from abusive collectors, but they were established over 30 years back. This was long before social media and the internet when the Fair Debt Collections Methods Act was put together.
The rules are fuzzy, but it is recommended that businesses that are part of the Association of Credit and Collection Professionals do not use social media for collection, according to Mark Schiffman of the trade association.
Abuse with social media
The advice is clearly not required, so many do not listen.
Bloomberg did a piece where they talked to attorney Bill Howard about the debt collector methods.
"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.
Hearing from federal regulators
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 websites to contact consumers.
The federal agencies have already laid down rules for debt collection companies, regulating aggressive rhetoric, making sure customers are kept updated on any legal actions, and also making it easier for consumers to register grievances.
Checking up on banking institutions
The Federal Banking 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 learn more by going to:
Their 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.
Opinions from all
Anyone who is being harassed by debt collectors should report it to the FTC or CFPB right away.
About the Author:
How many times have you needed more details on how to getinstant loans for bad credit, and resorted to an online search on "payday loan consolidation?" Look no further, all the information and facts you will need is at MatchFinancial!
No comments:
Post a Comment