04:40:00
In the wake of stiffer laws, some debt collectors and banks have turned to the social networking as a way to track down debtors and to drum up brand new business. However, federal regulators are looking into limiting the practice.
Rules mean nothing with social networking
The Fair Debt Collections Methods Act, established more than 30 years back, protects consumers from many abusive collection practices. However, those laws were established long before there was such a thing as the Internet or social media. Therefore, the laws have been spongy on the matter.
The rules are fuzzy, but it is recommended that corporations that are part of the Association of Credit and Collection Professionals do not use social media 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 attorney Bill Howard about the 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.'"
Many think that this is way too close to harassment and may even be considered stalking.
Hearing from federal experts
It may not be permitted for collectors to use Facebook, Twitter, Google Plus and LinkedIn to contact customers soon as the Federal Trade Commission and Consumer Financial Protection Bureau are looking into stopping abusive methods.
These agencies have already spent a ton of time creating rules to shield customers from aggressive legal methods, so it is not easier for consumers to register complaints. Brand new changes have to be made apparently.
Looking at financial institutions more closely
There are also ways the public can weigh in on how financial instructions use social media. This is something the Federal Banking institutions Examination Council is looking at and wants public opinion. Go to:
Their website
The CFPB 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 FTC if you feel you have been harassed by debt collectors.
Rules mean nothing with social networking
The Fair Debt Collections Methods Act, established more than 30 years back, protects consumers from many abusive collection practices. However, those laws were established long before there was such a thing as the Internet or social media. Therefore, the laws have been spongy on the matter.
The rules are fuzzy, but it is recommended that corporations that are part of the Association of Credit and Collection Professionals do not use social media 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 attorney Bill Howard about the 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.'"
Many think that this is way too close to harassment and may even be considered stalking.
Hearing from federal experts
It may not be permitted for collectors to use Facebook, Twitter, Google Plus and LinkedIn to contact customers soon as the Federal Trade Commission and Consumer Financial Protection Bureau are looking into stopping abusive methods.
These agencies have already spent a ton of time creating rules to shield customers from aggressive legal methods, so it is not easier for consumers to register complaints. Brand new changes have to be made apparently.
Looking at financial institutions more closely
There are also ways the public can weigh in on how financial instructions use social media. This is something the Federal Banking institutions Examination Council is looking at and wants public opinion. Go to:
Their website
The CFPB 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 FTC if you feel you have been harassed by debt collectors.
About the Author:
How many times have you wanted additional information on ways to getinstant online payday loans, and turned to a web site search on "instant loans for bad credit?" Look no further, all of the facts you will need is at MatchFinacial.com!
0 comments:
Post a Comment