Debt Collectors Are Now Allowed To Send You Direct Messages On Social Media Platforms
Debt collectors are now allowed to send you direct messages on social media platforms
When debt collectors use social media to contact debtors, the rules establish guidelines for how debt collectors should conduct themselves. It is required that all messages be kept private, and that the collector immediately identifies themselves.
New rules governing how debt collectors in the United States can contact debtors went into effect on Tuesday, and they included specific guidelines for the use of social media in debt collection.
The 1977 Fair Debt Collection Practices Act, which was largely drafted prior to the advent of the internet and social media, governs how debt collectors may contact debtors and how much information they can share with them.
Changes to that act, announced by the Consumer Financial Protection Bureau (CFPB) in October 2020, went into effect on November 30th of that year. It now establishes clear guidelines for how debt collectors may communicate with debtors via email, text message, and social media platforms, among other methods.
Additionally, the new rules place restrictions on how debt collectors can contact debtors through social media platforms, including Facebook and Twitter.
As a starting point, the messages must be private, which means debt collectors must send direct messages (DMs) rather than publicly commenting on someone's Facebook wall, Twitter profile, or Instagram post, for instance.
The debt collector must also identify themselves immediately; they are not permitted to send a friend request without first informing the debtor of their identity and the reason for which they are reaching out to them.
Debtors must be given the option to opt out of receiving messages from debt collectors via a specific social media platform, as a final step.
CFPB Director Kathleen Kraninger said in a statement at the time of the announcement of the rule changes in October 2020, "We are finally moving on from 1977 and developing a debt collection system that works for consumers and industry in the modern world."
For the first time this year, according to CNBC, the Federal Reserve of New York reported in September that US household debt surpassed $15 trillion for the first time in Q3 of this year.
