Rule allows debt collectors to track you down on social media

WASHINGTON » One byproduct of the pandemic has been more debtors, and now collection agencies have new ways to track down the people who owe them money.

So watch out who you connect with on Instagram or befriend on Facebook. It could be a debt collector contacting you through a direct message.

Debt collection rules that went into effect Tuesday have expanded the ways debt collectors can chase down debtors. In practice, it may mean millions of consumers can now be bombarded with email and text messages and requests to connect on their social media accounts.

The changes to the Fair Debt Collection Practices Act (FDCPA), which is intended to eliminate abusive debt collection practices, were introduced during the Trump administration when the Consumer Financial Protection Bureau (CFPB) became friendlier to the business community.

The CFPB director at the time, Kathy Kraninger, a Trump appointee who resigned at

Biden’s request, said the rules were intended to “modernize the legal regime for debt collection.”

But if left unchecked, this expanded access to consumers could very well contribute to new ways to harass struggling consumers.

At the end of the third quarter this year, 77.6 million consumers had at least one debt in collections with $188 billion in outstanding balances, according to a report by TransUnion.

The collection industry praised the update, arguing that text and email are now the preferred methods for communication for many people.

“The CFPB’s debt collection rule is a small step forward in modernizing communications with consumers,” Mark Neeb, chief executive of ACA International, the association of credit and collection professionals, said in a statement.

The rules establish certain contact limitations to protect people’s privacy and spare them from harassment, abuse or unfair practices. If you’re contacted on your social media account, the message has to be private. The debt collectors can’t post something that is viewable by the general public or by your friends or followers.

And no subterfuge is allowed. If a debt collector sends you a private message requesting to add you as a friend or contact, the company must make it clear they are attempting to collect a debt, according to the rule changes. They must also give you a way to opt out of receiving further communications from them on that social media platform.

I’ve followed this issue for years, and while many companies operate within the law, illegal operations can do a lot of damage to innocent consumers. Debt collection isn’t wicked. But