In the wake of stiffer regulations, some debt collectors and financial institutions have turned to the social media as a way to locate debtors and to drum up new business. However, federal regulators are considering limiting the practice.
Regulations lost
There have been a ton of rules guarding consumers from abusive collectors, but they were established over 30 years ago. 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 businesses should not use social networking since the rules are not clear.
Not everyone claims no to social media
The advice is clearly not required, so many do not listen.
Attorney Billy Howard spoke with author Carl Dougherty about the methods of some debt collectors for a piece 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.'"
Some say the practice at times borders on stalking or harassment.
Issue on a federal standard
The CFPB 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 defend customers from aggressive legal practices, so it is not easier for customers to register complaints. New changes need to be made apparently.
Looking at banks more closely
In the meantime, 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 banking institutions can use social media in attracting business. To view that guidance, go to:
The Regulations Government Website
The Consumer Financial Protection Bureau states there are about 30 million American consumers being pursued by collection companies today. The Accounts Receivable Management industry earns about $12 billion in revenue each year.
Opinions from all
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
There have been a ton of rules guarding consumers from abusive collectors, but they were established over 30 years ago. 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 businesses should not use social networking since the rules are not clear.
Not everyone claims no to social media
The advice is clearly not required, so many do not listen.
Attorney Billy Howard spoke with author Carl Dougherty about the methods of some debt collectors for a piece 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.'"
Some say the practice at times borders on stalking or harassment.
Issue on a federal standard
The CFPB 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 defend customers from aggressive legal practices, so it is not easier for customers to register complaints. New changes need to be made apparently.
Looking at banks more closely
In the meantime, 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 banking institutions can use social media in attracting business. To view that guidance, go to:
The Regulations Government Website
The Consumer Financial Protection Bureau states there are about 30 million American consumers being pursued by collection companies today. The Accounts Receivable Management industry earns about $12 billion in revenue each year.
Opinions from all
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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