Albany Times Union (Sunday)

Debt collectors on social media

Beware: New rules can lead to confusion and an increase in scams

- By Lauren Schwahn NerdWallet lschwahn@erdwallet.com

Social media is where you watch cooking videos, gaze at photos of dreamy travel destinatio­ns and doomscroll through endless news headlines. Now, sites like Instagram, Facebook and Twitter could also be where debt collectors slide into your DMs.

In late 2021, rule changes under the Fair Debt Collection Practices Act went into effect that specify how third-party debt collectors can communicat­e through social media, email and texts.

Consumer advocates like April Kuehnhoff, a staff attorney at the National Consumer Law Center, are concerned these rules could lead to confusion and an uptick in scams.

“It’s much cheaper to use electronic communicat­ions to reach out to more people. We’ll see a rise in the number of illegitima­te actors who are impersonat­ing debt collectors and emailing, direct messaging or texting people in an attempt to get them to pay money for debts that they don’t actually owe,” Kuehnhoff said.

Spotting the signs and knowing your rights can help you guard against unfair and fraudulent debt collection practices. Here’s what to watch for and how to stay safe as you sift through notificati­ons.

Recognize the red flags

Several warning signs can alert you to abusive behavior or scams:

The message isn’t private. Debt collectors can request to join your friends or followers as long as they tell you they’re debt collectors. However, the FDCPA states that all communicat­ions must be private. That means messages can’t be visible to the public or people in your network on the platform. If you receive a message that others can see, that signals a bad actor.

Important informatio­n is missing. Debt collectors are legally obligated to share specific details about the debt, including the amount owed, the creditor’s name and informatio­n about your rights. They’ll provide this informatio­n, known as a validation notice, the first time they contact you or within five days.

“If someone’s just saying ‘I’m a debt collector’ and nothing else, I would definitely be suspect from the start,” said Katie Bossler, a quality assurance specialist at GreenPath, a nonprofit credit counseling agency.

You’re threatened or harassed. “Sometimes scammers will threaten consumers with arrest or deportatio­n or try to scare them into paying quickly,” Kuehnhoff said. But it’s illegal for collectors to make threats or use violent or profane language.

A collector also cannot legally sue you if the debt is timebarred, or past the statute of limitation­s. How do you know if your debt is time-barred? Research your state’s laws and review your payment history on your credit reports. Or, consider seeking help from your local legal aid office or a nonprofit credit counseling agency.

You’re asked to make an unusual payment. Fraudsters often seek fast payment through difficult-to-recover methods. A legitimate debt collector won’t pressure you to pay using questionab­le means such as a money transfer, bitcoin terminal or prepaid card, Kuehnhoff said.

Don’t pay anything without first confirming that the debt and the collector are real. You can learn more about fake and abusive debt collectors from the Federal Trade Commission.

Know and protect your rights

The FDCPA gives you certain protection­s. For example, you can opt out of communicat­ions. Collectors are required to provide an easy, free way to end social media contact. That won’t erase the debt, however.

You also have the right to dispute a debt that you believe is incorrect or not yours. However, you’ll have to submit a written request within 30 days of receiving notice if you want to dispute or get more informatio­n about the debt. Informatio­n on how to do either must be included in the collector’s initial communicat­ion.

How can you verify the debt and the collector? Bossler suggests starting with pulling your free credit reports from AnnualCred­itReport.com. “Make a list of the debts that you owe: the creditors, the balances, the account numbers. The debt collector will often reference the last four digits of the account number,” Bossler said.

You may be dealing with a collection department for the original creditor, making it easier to match up the details. But the original creditor may have sold the debt to an outside company. That third-party collector should provide informatio­n such as their name, company and mailing address. Use these details to double-check their authentici­ty.

If a debt collector violates your rights or you encounter a scam, you can file a complaint with the FTC, the Consumer Financial Protection Bureau or your state attorney general’s office.

 ?? Associated Press ?? Last year, the Consumer Financial Protection Bureau rolled out new rules that allow debt collectors to contact debtors through social media.
Associated Press Last year, the Consumer Financial Protection Bureau rolled out new rules that allow debt collectors to contact debtors through social media.

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