Some financial institutions and debt collection agencies are taking to the social networking to locate those who owe or to lure brand new consumers. Regulators in Washington are putting a microscope on the practices.
Rules mean nothing with social media
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 Practices Act was put together.
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 corporations stay away from using social media for collection purposes.
Social media used by some
Not every debt collector listens to the advice.
The practices 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.'"
Many believe that this is way too close to harassment and may even be considered stalking.
Hearing from federal experts
This problem has been noted by the Federal Trade Commission and CFPB. The organizations will choose if collectors can use LinkedIn, Facebook and other social sites to contact consumers.
These agencies have already spent a lot of time producing rules to protect consumers from aggressive legal practices, so it is not easier for customers to register grievances. New changes have to be made apparently.
Banking institutions also in trouble
Meanwhile, 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 banking institutions can use social media in attracting business. To view that guidance, go to:
Their website
The Consumer Financial Protection Bureau 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.
Do not be afraid to speak up
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.
Rules mean nothing with social media
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 Practices Act was put together.
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 corporations stay away from using social media for collection purposes.
Social media used by some
Not every debt collector listens to the advice.
The practices 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.'"
Many believe that this is way too close to harassment and may even be considered stalking.
Hearing from federal experts
This problem has been noted by the Federal Trade Commission and CFPB. The organizations will choose if collectors can use LinkedIn, Facebook and other social sites to contact consumers.
These agencies have already spent a lot of time producing rules to protect consumers from aggressive legal practices, so it is not easier for customers to register grievances. New changes have to be made apparently.
Banking institutions also in trouble
Meanwhile, 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 banking institutions can use social media in attracting business. To view that guidance, go to:
Their website
The Consumer Financial Protection Bureau 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.
Do not be afraid to speak up
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.
About the Author:
How often have you expected addiitional information on how to getinstant payday loans online, and resorted to a web search on "quick payday loans no credit check?" Your search is over, all the details you need is at MatchFinacial.com.
No comments:
Post a Comment