Debt collectors are gaining new ways to reach you, including emails, texts, and social media DMs. But remember, you have rights. Here’s how to make them unfollow you.

Thanks to the Consumer Financial Protection Bureau (CFPB), collection agencies can now contact you through these modern channels. This means alongside unwanted ads and friend requests, debt collectors can also invade your social media.

UPDATING COLLECTION PRACTICES

Recent modifications to the Fair Debt Collection Practices Act were put in place after Kathleen Kraninger's presidency at the CFPB. She noted that debt collection methods have lagged since 1977. By embracing emails, texts, and social media messaging, the CFPB aims to make the process smoother for everyone. Leah Dempsey, a senior counsel at a debt collection trade group, stated that research indicates consumers prefer being contacted via modern methods, including private messages on social platforms. “Consumers achieve better outcomes when they understand their options,” she added.

However, many individuals contacted by debt collectors may not share this sentiment. Annually, numerous people report feeling overwhelmed by persistent calls. According to TransUnion, about 77.6 million consumers had at least one debt in collection as of the third quarter. While this number shows a decrease from 2020, predictions suggest an uptick in collection activities next year as customer defaults rise.

Mary McCune, a Consumer Law Specialist and Staff Attorney, remarked, “This is a significant shift for both consumers and debt collectors. It provides collectors with multiple avenues for contacting individuals.” However, she also cautioned that many already feel harassed by phone calls, making this change a potential source of added stress.

PROTECTIONS IN PLACE

Regulations exist to limit how often debt collectors can reach out or expose personal information on social media. Collectors must contact you privately on social media and identify themselves when sending a friend request. They also need to offer a straightforward method for you to stop further messages. You can opt-out by replying with a 'stop' in a text, email, or by calling the collector. Most legitimate agencies should honor this request, according to attorney April Kuehnhoff.

Nonetheless, advocates express concern that the current rules might be exploited by less reputable collectors. Furthermore, social media users might not pay close attention to new connections, allowing a debt collector to become an unexpected follower. McCune warns that this could lead to situations where a collection agency mistakenly reveals a personal debt to an unrelated party.

POTENTIAL FOR INCREASED ONLINE FRAUD

There are also worries that these new regulations could lead to a rise in online scams. With debt collectors now allowed to reach out via email, text, and DMs, scammers posing as collection agencies could easily target consumers. Their goal? To extract personal information or compromise devices. Consumers will need to be vigilant to determine whether a contact is genuine.

Kuehnhoff advises against clicking on links or opening attachments from unknown sources. If a message threatens immediate payment, it’s a red flag. “If someone unfamiliar suddenly contacts you, it’s crucial to conduct your due diligence,” she cautioned. “Avoid clicking links or sharing personal details. Do your research first.”

STEPS TO PROTECT YOURSELF

If you feel overwhelmed by a collection agency, there are measures you can take. Begin by opting out through email, text, or phone call. Legally, they must cease communication in that manner once you request it. Do not click on any opt-out links unless you verify their legitimacy by contacting the agency directly.

Collection agencies are permitted to reach out to you a maximum of seven times per week per debt and can only have one conversation with you weekly. If you're receiving more frequent calls or at odd hours, keep a record and report it to the CFPB.

“Consumers are entitled to express their communication preferences,” Kuehnhoff stated. “If they request no calls or emails and continue to receive them, they may have legal grounds under the Fair Debt Collection Practices Act. There are attorneys nationwide ready to assist them.”