Roomies, if you ever needed a sign to stop showing off your money, jewelry, and other valuable items online, now is the time. Especially if you owe money to debt collectors. The COVID-19 pandemic has changed many things regarding finances and due to new rules and regulations, collecting debt is one of them. It seems like debt collectors already do any and everything to collect money owed, but now social media is going to help them take it up a notch!
A new report from the Washington Post states that federal regulators have given debt collectors the okay to pursue debtors via email, text messages, and social media sites. The new rules went into effect Tuesday, which may affect millions of consumers. One might ask, who made this approval? Well, you can thank Fair Debt Collection Practices Act (FDCPA).
FDCPA purpose is to eliminate abusive debt collection practices. It was introduced by former President Donald Trump’s administration when the Consumer Financial Protection Bureau (CFPB) became friendlier to the business community. Kathy Kraninger, CFPB’s previous director, appointed by Trump, and resigned at President Joe Biden’s request, and said the rules were intended to “modernize the legal regime for debt collection.”
To break down the rules, they were created to establish certain contact limitations to protect people’s privacy and spare them from harassment, abuse, or unfair practices. So if you’re contacted on your social media account, you don’t have to worry about everyone being in your business because the message has to be privately through the DMs. Debt collectors aren’t allowed to post something viewable by the general public.
In addition, if a debt collector sends you a DM or requests to add you as a friend or contact, the company must make it clear they are attempting to collect a debt. Also, they must provide the option to opt-out of receiving further communications from them on the social media platform they contacted you on. So Roomies take with this information as you will, and if you’re a person who owes a debt, be mindful that collectors have a limited number of years in which they can sue someone to collect. After the time runs out, all unpaid debts are considered “time-barred.”
Roomies, do you think this new rule is fair?
Want updates directly in your text inbox? Hit us up at 917-722-8057 or https://my.community.com/theshaderoom