The next time someone tries to friend you on Facebook or follow you on Instagram, it could be a debt collector.
New rules approved by the Consumer Financial Protection Bureau that took effect on 11/30/22021 dictate how collection agencies can email and text people as well as message them on social media to seek repayment for unpaid debts.
Kathleen L. Kraninger, the former CFPB director who oversaw the rule changes, said last year that they were a necessary update to the Fair Debt Collection Practices Act, which is more than four decades old.
“We are finally leaving 1977 behind and developing a debt collection system that works for consumers and industry in the modern world,” Kraninger said in a blog post.
But consumer advocates say borrowers risk missing key information about their debts or falling prey to illegal scams if they’re contacted online.
“The rules are really disappointing and concerning in a number of ways,” said April Kuehnhoff, a staff attorney at the National Consumer Law Center.
Debt collectors can now use social media to send direct messages to borrowers who owe, the Consumer Financial Protection Bureau has ruled. https://t.co/5PNEXUqA9B
— NBC News (@NBCNews) December 2, 2021
Photo| iStock
