US Creditors can Contact the debtors through Social Media

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US Creditors can Contact the debtors through Social Media
04 Dec 2021
6 min read

News Synopsis

The Consumer Financial Protection Bureau has announced a new rule for the US creditors. The CFPB has allowed the creditors to use social media to contact the debtors. According to the rule, the creditors can direct message the debtors and are not allowed to post on the public-facing page of the debtors.

The new rule also states that the consumers can easily opt-out of these messages. There is no mention of how many messages the creditors can send and that creditors do not need any type of permission to contact the debtors. The new rule also limits the number of phone calls made by the creditors. The CEO of the debt collector trade group  ACA International has termed the new rule as a way to modernize communication with consumers.

Critics have come out with the faults in the new rule by saying that it could lead to privacy invasion and can spread new scams. They have also said that the debtors may not receive the message due to not having constant access to the internet.

TWN In-Focus