ST. LOUIS, MO (KMOX) - People reaching out to you by social media may be anything but friends. Author Julie Smith tells KMOX, under new rules, debt collectors are allowed to send friend requests or direct messages.
Smith says, "the rules stipulate they have to identify themselves as debt collectors." You have the choice of opting out of being contacted online. Debt collectors are not allowed to post anything that can be seen publicly.
"The biggest fear is that criminals will take advantage and attempt to swindle people out of money portraying themselves as debt collectors," points out Smith.
The rule went into effect last month after it was approved by the Consumer Financial Protection Bureau’s former president, Kathleen L. Kraninger last year. She says the rule reflects the use of modern technology and debt collectors were working with standards that hadn't changed since the 1970s.
"Debt collection is a multi-billion dollar industry with more than 8,000 debt collection firms in the United States," she wrote in a blog post. The 1977 Fair Debt Collection Practices Act prohibits harassing and abusive and unfair debt collection practices as well as false and misleading representations by debt collectors. Our rule applies these protections to modern technologies. The rule clarifies how debt collectors can use email, text messages, social media, and other contemporary methods to communicate with consumers. And our rule will allow consumers, if they prefer, to limit the ability of debt collectors to communicate with them through these newer communication methods."
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