Some banking institutions and debt collection agencies are taking to the social media to track down those who owe or to lure brand new customers. Regulators in Washington are putting a microscope on the methods.
Getting past all the regulations
There have been a lot of rules protecting 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 Association of Credit and Collection Professionals is an international trade association that Mark Schiffman is part of. He explained that member corporations should not use social networking because the rules are not clear.
Social media used by some
The advice is obviously not required, so many do not listen.
Bloomberg did a piece where they talked to attorney Bill Howard about the 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.'"
It is close to stalking or harassment, some believe.
Listening to from federal regulators
The Consumer Financial Protection Bureau and the Federal Trade Commission are looking into regulating how, or even if, debt collectors should be legally allowed to pursue debtors on Facebook, Twitter, Google Plus and LinkedIn.
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 customers to register grievances.
Financial 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 financial institutions can use social media in attracting business. To view that guidance, go to:
Their website
About $12 billion in revenue is received by the Accounts Receivable Management industry each year while 30 million American consumers are pursued by firms right now, according to the Consumer Financial Protection Bureau.
Views from all
Anybody who is being harassed by debt collectors should report it to the Federal Trade Commission or Consumer Financial Protection Bureau right away.
Getting past all the regulations
There have been a lot of rules protecting 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 Association of Credit and Collection Professionals is an international trade association that Mark Schiffman is part of. He explained that member corporations should not use social networking because the rules are not clear.
Social media used by some
The advice is obviously not required, so many do not listen.
Bloomberg did a piece where they talked to attorney Bill Howard about the 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.'"
It is close to stalking or harassment, some believe.
Listening to from federal regulators
The Consumer Financial Protection Bureau and the Federal Trade Commission are looking into regulating how, or even if, debt collectors should be legally allowed to pursue debtors on Facebook, Twitter, Google Plus and LinkedIn.
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 customers to register grievances.
Financial 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 financial institutions can use social media in attracting business. To view that guidance, go to:
Their website
About $12 billion in revenue is received by the Accounts Receivable Management industry each year while 30 million American consumers are pursued by firms right now, according to the Consumer Financial Protection Bureau.
Views from all
Anybody 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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