Finance News & Insights

Court: Don't use social networking in Collections

Your A/R staffers probably use an array of tools to get in touch with past-due customers. Just make sure they don’t use social networking sites.

Here’s why: In a precedent-setting ruling, a judge recently ordered a collections staffer not to contact a delinquent customer or her friends and family members via any social networking site.

The customer in this case had fallen behind on her car payments and avoided calls and emails regarding her past due account. So the company holding her car loan tried contacting her, as well as her sister, through Facebook.

But a judge ruled this violated the customer’s rights under the Fair Debt Collection Practices Act. This marks the first ruling where a judge specifically stated that creditors cannot use a social networking website to collect a debt.

To avoid any legal issues, its best to encourage your A/R staffers to only use social media to confirm customer info you already have.

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