Federal financial experts are considering ways to limit how debt collectors and banks can use social media in searching for delinquent borrowers or attracting customers.
Rules mean nothing with social networking
The Fair Debt Collections Methods Act, established more than 30 years back, protects consumers from many abusive collection methods. However, those regulations were established long before there was such a thing as the Internet or social media. Therefore, the rules have been spongy on the matter.
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 networking for collection, according to Mark Schiffman of the trade association.
Abuse with social networking
Not every debt collector listens to the advice.
Bloomberg did a piece where they talked to lawyer 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.'"
It is close to stalking or harassment, some believe.
Issue on a federal standard
It may not be permitted for debt collectors to use Facebook, Twitter, Google Plus and LinkedIn to contact customers soon as the Federal Trade Commission and CFPB are looking into stopping abusive practices.
The federal agencies 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 complaints.
Looking at financial institutions more closely
There are also ways the public can weigh in on how financial instructions use social networking. 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 yearly while 30 million American customers are pursued by companies right now, according to the CFPB.
Views from all
Anyone who is being harassed by debt collectors should report it to the FTC or CFPB right away.
Rules mean nothing with social networking
The Fair Debt Collections Methods Act, established more than 30 years back, protects consumers from many abusive collection methods. However, those regulations were established long before there was such a thing as the Internet or social media. Therefore, the rules have been spongy on the matter.
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 networking for collection, according to Mark Schiffman of the trade association.
Abuse with social networking
Not every debt collector listens to the advice.
Bloomberg did a piece where they talked to lawyer 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.'"
It is close to stalking or harassment, some believe.
Issue on a federal standard
It may not be permitted for debt collectors to use Facebook, Twitter, Google Plus and LinkedIn to contact customers soon as the Federal Trade Commission and CFPB are looking into stopping abusive practices.
The federal agencies 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 complaints.
Looking at financial institutions more closely
There are also ways the public can weigh in on how financial instructions use social networking. 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 yearly while 30 million American customers are pursued by companies right now, according to the CFPB.
Views 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 addiitional information on how to getshort terms loans, and turned to an online search on "bad credit personal loans?" Look no further, all the information and facts you'll need is at Match Financial.
No comments:
Post a Comment