PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • COVID-19
  • News
  • Events
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • COVID-19
  • News
  • Events
No Result
View All Result
PaymentsJournal
No Result
View All Result

Your Debt Collector Wants to Friend You on Facebook

Peter Reville by Peter Reville
November 18, 2020
in Analysts Coverage, Collections, Debt
0
Your Debt Collector Wants to Friend You on Facebook

Your Debt Collector Wants to Friend You on Facebook

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

If you owe money, it just got harder to hide from the debt collectors.

The Consumer Financial Protections Bureau (CPFB) has recently ruled that debt collections agencies can now use social media outlet like Facebook and Twitter to try to recover outstanding debt. Further, email and text dunning notices are also fair game. The CPFB says it is simply modernizing the debt collection process to allow it to use more modern means of connecting to those who owe money.

According to an article in The Register, the CPFB was simple updating old rules:

The CFPB claims that the new rules were the result of “a deliberative, thoughtful process spanning more than seven years and reflects engagement with consumer advocates, debt collectors, and other stakeholders.” It updates rules written 40 years ago, long before the advent of modern technology and smart phones.

But in the lengthy report and explanation on the new rules, it rejected significant public comment that social media should be completely off bounds for debt collectors, using the phrase “the Bureau declines to prohibit private social media communications and attempts to communicate” repeatedly in response to concerns.

I think it is important to point out that debt collection agencies cannot post to someone’s public site. In other words, the world will not be able to see Facebook timelines with “Where’s the money” posted next to the kitten videos. Rather the collection agencies will have to coerce the debtor to “friend” them or “follow” them (or however people connect on social media) on specific social media outlets and then, and only then, can they start sending them direct messages (DMs) asking for the money. The friending option isn’t required for email or text messages.

The ruling does allow some opportunity to consumers who feel that they are being harassed be debt collectors through the channels that are already available. It notes that the “general prohibition on harassing, oppressive, or abusive conduct” applies to these new ways of contacting consumers just as it has for phone calls and mail debt collection notices.

As you might imagine the consumer advocacy organizations are not at all happy about this ruling and they have already started to make their displeasure known to the CPFB.  As an article in Slash Gear reports:

Many people and consumer protection agencies are against the new regulations. Consumer Reports created a petition this week, aiming to stop abusive debt collection. The petition warns that the collectors could harass people even if they don’t owe money.

At first glance, this seems like a truly draconian move by the CPFB. After thinking about it, though, if a person chooses not to friend or follow or BFF a debt collection agency, on its face, where’s the harm? But, on the other hand, why even open up this door for the collections agencies? Rules are meant to be broken, right?

Overview by Peter Reville, Director, Primary Research Services at Mercator Advisory Group

Tags: consumerDebtFacebookFair Debt Collection Practices ActSocial MediaTwitter
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily
    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Mercator Advisory Group analysts and industry professionals.

    Must Reads

    Explaining the Bill Payment Ecosystem

    Explaining the Bill Payment Ecosystem

    January 15, 2021
    QSRs Can Address Loyalty Program Shortcomings by Serving Up Better Offers

    QSRs Can Address Loyalty Program Shortcomings by Serving Up Better Offers

    January 14, 2021
    How Merchants Can Prevent Account Takeovers—and Why Failing to Do So Amplifies Operational Expenses

    How Merchants Can Prevent Account Takeovers—and Why Failing to Do So Amplifies Operational Expenses

    January 13, 2021
    How Banks Can Leverage Tech Partnerships to Enable Innovation for Commercial Clients

    How Banks Can Leverage Tech Partnerships to Enable Innovation for Commercial Clients

    January 11, 2021
    The Future of Phixius (and Interoperable Financial Services)

    The Future of Phixius (and Interoperable Financial Services)

    January 8, 2021
    Fraudulent Activity is the New Virus, and Here Are Some Possible Solutions

    Fraudulent Activity is the New Virus, and Here Are Some Possible Solutions

    January 7, 2021
    The Future for Restaurants is Touchless

    The Future for Restaurants is Touchless

    January 6, 2021
    Reimagining the Insurance Industry During COVID-19: Why the Cloud is Leading the Way

    Reimagining the Insurance Industry During COVID-19: Why the Cloud is Leading the Way

    January 5, 2021

    Connect With Us

    • Advertise With Us
    • About Us
    • Terms of Use
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • COVID-19
    • News
    • Events

    © 2021 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result
    ×

    Login

    Forgotten Password?

    Lost your password?
    | Back to Login

      Subscribe!

      Thank you for visiting PaymentsJournal! Please subscribe to our newsletter to receive consumer data insights and daily analysis from Mercator analysts and industry experts.

      ×

      How will COVID-19 Effect the Payments Industry?

      Check out our latest:

      – Consumer Data – Complimentary Reports
      – Podcasts – Mercator Analyst Commentary
      – Industry Opinions

      ×

      WEBINAR:
      How Digital Acceleration Will Affect Payment Industry

      Please join us for this panel discussion on addressing the challenges to pave the way to payments innovation and profitability and gain insights on the key trends and challenges impacting the payments landscape in North America.

      REGISTER