Now That Debt Collectors Can Reach Out on Social Media, What Are the Rules?

Debt collectors have the go-ahead to send social media messages on platforms like Facebook, Twitter, and Instagram. They can also friend request you.

The Consumer Financial Protection Bureau issued new rules that went into effect last November - updating the Fair Debt Collection Practices Act that first went into effect back in 1977.

Read on to learn more about the rules for contact over social media.

NO EXCESSIVE MESSAGES; MESSAGES MUST BE PRIVATE

“They can't post in a way that would be viewable to the general public or even just viewable to your social media contacts,” explains April Kuehnhoff, an attorney with the National Consumer Law Center.

Social media messages must be private, so a debt collector can’t post on your page or comment.

When sending a message, the debt collector must identify themselves and wait at least 14 days after messaging to tell the credit bureaus a consumer defaulted on a debt.

The CFPB said it won’t tolerate excessive social media messages. How many is too many? An exact number isn't clear.

The CFPB defines excessive phone call attempts, including voicemails, as seven calls in seven days about a single debt.

Kuehnhoff explains the CFPB did not define excessive social media attempts, “While it might not be too clear to the consumer exactly what that line is, consumers do have rights.”

CONSUMERS CAN OPT-OUT OF SOCIAL MEDIA DMs

You have the right to opt out of social media messages. The new rules require debt collectors to provide a simple way to stop further social media communication.

Kuehnhoff said consumers can communicate directly with the debt collection agency about the best ways to be in touch.

The CFPB has sample letters you can use to write to a debt collector if you’re being contacted about a debt that doesn’t belong to you, if you need more information, if you want the debt collector to stop contacting you or if you prefer another communication method.

If that doesn’t work, you can file a complaint with the CFPB by calling 855-411-2372 or submitting an online complaint here.

A CFPB spokesperson said, “We’re not going to tolerate excessive emails, texts, or DMs, and we expect debt collectors to verify consumers’ identities as well as the underlying debts. Far too many Americans are hounded to pay money they do not owe. It is a violation of the Fair Debt Collection Practices Act, and the new rules, to communicate with the wrong person about a debt.”

The Association of Credit and Collection Professionals said it’s invested thousands of hours and significant resources into coming into compliance with CFPB rules.

“The CFPB must work with the accounts receivable management industry to address concerns to ensure there are clear compliance standards so that consumers can receive the information they need to preserve their access to credit and services in the future. Consumers deserve to know about their options for resolving legal obligations through modern forms of communication,” according to ACA International Vice President and Senior Counsel of Federal Advocacy Leah Dempsey.

A WORD ABOUT SCAMS

The National Consumer Law Center said consumers should be on guard for scammers who aren’t collecting a legitimate debt. Don’t click on links sent to you from someone you don’t know.

The Federal Trade Commission said be wary of anyone who wants you to repay a debt you don’t recognize. If the stranger won’t provide their mailing address or phone number, that’s a red flag. 

The Texas Debt Collection Act also said debt collectors can’t use obscene language or threaten violence. You can also reach out to the Office of the Texas Attorney General if you believe a debt collector hasn’t followed Texas law.

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