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 methods.
<strong>Ways to avoid rules</strong>
There have been a lot of rules safeguarding consumers 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.
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 media since the rules are not clear.
<strong>Many think social media should be used</strong>
The advice is obviously not required, so many do not listen.
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.'"
It is close to stalking or harassment, some think.
<strong>Issue on a federal standard</strong>
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.
The federal agencies have already laid down rules for debt collection businesses, regulating aggressive rhetoric, making sure consumers are kept updated on any legal actions, and also making it easier for customers to register grievances.
<strong>More problems with financial institutions</strong>
The Federal Financial institutions Examination Council wants to put more limits on how financial institutions can use social networking, and it wants public opinion on the issue. You can find out more by going 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 ton of cash and a ton of abuse.
<strong>Don't be afraid to speak up</strong>
Everyone who is being harassed by debt collectors should report it to the FTC or CFPB right away.
Article source: <a href="https://
