Friday, November 25, 2011

Office of Fair Trading Warns Debt Collectors from Using Social Media in Debt Collection

The Office of Fair Trading (OFT) is warning debt collectors from using social media like Facebook and Twitter in collecting debts from their debtors.

According to the Office of Fair Trading, debt collectors usually use social media to locate their debtors and see if there are still any properties or assets they might collect. However, said office had received complaints from the debtors who are being pressured or deliberately harassed online to pay off their loans.

Social media can be a very powerful way to bother someone. Debt collectors can easily post messages in social media to let the whole world know about someone’s indebtedness or contact the debtor’s friends and relatives to have them call their office. In that way, debtors will be forced to pay all their indebtedness. That’s a clear violation of the Fair Debt Collection Practices Act.

Due to the complaints, the Office of Fair Trading has updated its debt collection guidance to condemn the unfair or improper practice of debt collection. It also warned debt collectors that contact debtors at an uncertain time and at inappropriate places.

OFT director of consumer credit David Fisher said that in the current economic status, many people are exposed to financial difficulties. He stressed out that it is very important that debtors must treat those people fairly.

The Financial Ombudsman Service said that problems from debtors are rising from 59% of the complaints in the first six months of the year and keeping one in three debt–collecting complaints.

Debt collectors who break the rules should indeed be cracked down according to the debt charity Consumer Credit Counseling.

It’s understandable that debtors are obliged to pay their indebtedness on time. However, there really comes a time when a person experiences financial difficulties. And of course, debtors never want to disclose their financial problems to their friends and co – workers for some reasons.

Debt collectors should take a little consideration for debtors in debt collection. They should give respect to one’s confidentiality. They are already invading one’s private life. It really proves that constitutional changes must be made in able to adapt to today’s modern technology, specifically to set limits on the virtual world.

In case you experienced trouble or been harassed or annoyed by your collection agent, you may hire for the best attorney services to fight for your rights as a debtor.