CFPB Allows Debt Collectors to Use Social Media

Resource: CUNA Mutual Group Risk Alert

A new rule allows debt collectors to contact consumers on social media, text or email — not just by phone.

The rule, which was approved last year by the Consumer Financial Protection Bureau’s former director Kathleen L. Kraninger, took effect Nov. 30. In a 2020 blog post about the changes, Kraninger wrote that debt collectors were working with outdated standards that have not been changed since 1977, and that the new rule reflects the use of modern technologies.

The rule also clarifies restrictions on how debt collectors can contact you, as defined by the Fair Debt Collection Practices Act. Collectors must clearly identify themselves, only send private messages and as part of their message, offer an opt-out option for receiving further messages when reaching out through social media, email or texts.

As for phone calls, debt collectors were already restricted to only seven calls within seven days, but the new rule clarifies that calls that go straight to voicemail are counted as contact by phone.

No subterfuge is allowed. If a debt collector sends a private message requesting to be added as a friend or contact, the company must make it clear they are attempting to collect a debt, according to the rule changes. Consumer also get a way to opt-out of receiving further communications from them on that social media platform.

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