Debt Collectors And Banks Follow You On Facebook, Twitter

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By Cornelius Nunev


Federal financial experts are considering ways to limit how debt collectors and banks can use social networking in tracking down delinquent borrowers or attracting consumers.

Social networking slips between regulatory cracks

There have been a lot of rules safeguarding customers from abusive collectors, but they were established over 30 years back. This was long before social networking 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 businesses should not use social media since the rules are not clear.

Social networking used by some

The advice is definitely 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.'"

Many believe that this is way too close to harassment and may even be considered stalking.

Hearing from federal experts

The Consumer Financial Protection Bureau and the Federal Trade Commission are looking into regulating how, or even if, collectors should be legally allowed to pursue debtors on Facebook, Twitter, Google Plus and LinkedIn.

These organizations have already spent a lot of time producing rules to guard consumers from aggressive legal practices, so it is not easier for consumers to register grievances. New changes have to be made apparently.

More problems with banks

Meanwhile, The U.S. Federal Financial 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 networking in attracting business. To view that guidance, go to:

Their website

The Consumer Financial Protection Bureau says 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

Anybody who is being harassed by debt collectors should report it to the Federal Trade Commission or CFPB right away.




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