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Some banking institutions and debt collection agencies are taking to the social media to track down those who owe or to lure brand new consumers. Experts in Washington are putting a microscope on the practices.
Regulations lost
The Fair Debt Collections Practices Act does not check out the internet or social networking when looking at how collectors can contact consumers. The act was there to set up rules to shield customers from abusive collectors, but the Internet was never addressed.
The Association of Credit and Collection Professionals is an international trade association that Mark Schiffman is part of. He explained that member businesses should not use social networking since the rules are not clear.
Many think social networking should be used
However, not every Accounts Receivable Management business has heeded those words.
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.'"
It is close to stalking or harassment, some believe.
Looking at the issue
It may not be permitted for debt collectors to use Facebook, Twitter, Google Plus and LinkedIn to contact consumers soon as the Federal Trade Commission and CFPB are looking into stopping abusive methods.
These agencies have already spent a lot of time making rules to shield consumers from aggressive legal practices, so it is not easier for consumers to register grievances. New changes have to be made evidently.
More troubles with financial institutions
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:
The Regulations Government 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 ton of abuse.
Give you opinion
Get a hold of the Consumer Financial Protection Bureau for Federal Trade Commission if you feel you have been harassed by debt collectors.
Regulations lost
The Fair Debt Collections Practices Act does not check out the internet or social networking when looking at how collectors can contact consumers. The act was there to set up rules to shield customers from abusive collectors, but the Internet was never addressed.
The Association of Credit and Collection Professionals is an international trade association that Mark Schiffman is part of. He explained that member businesses should not use social networking since the rules are not clear.
Many think social networking should be used
However, not every Accounts Receivable Management business has heeded those words.
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.'"
It is close to stalking or harassment, some believe.
Looking at the issue
It may not be permitted for debt collectors to use Facebook, Twitter, Google Plus and LinkedIn to contact consumers soon as the Federal Trade Commission and CFPB are looking into stopping abusive methods.
These agencies have already spent a lot of time making rules to shield consumers from aggressive legal practices, so it is not easier for consumers to register grievances. New changes have to be made evidently.
More troubles with financial institutions
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:
The Regulations Government 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 ton of abuse.
Give you opinion
Get a hold of the Consumer Financial Protection Bureau for Federal Trade Commission if you feel you have been harassed by debt collectors.
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