Debt Collection Via Facebook? Posted by AVCU on 9:24 AM

The popularity of social media vehicles has taken a new twist as a Florida collections agency has reportedly used it as a tool in its collection efforts. According to American Banker, a judge has ordered MarkOne Financial LLC to stop contacting Melanie Beacham and her family and friends on Facebook about her delinquent loan. Beacham filed suit in 2010 against MarkOne, which sent her messages on Facebook to call concerning a delinquent car loan. MarkOne also sent messages to Beacham's family via Facebook asking that they direct her to call the agency. Both acts violated Florida's consumer protection law.


The federal Fair Debt Collection Practices Act doesn't address social media. Without clear federal guidelines, collectors are in a gray area when it comes to using social media. The FDCPA has general guidelines about unfair and deceptive practices, but none specifically for online communications or social media. Consequently, the courts may end up having a greater influence over rules governing the use of social media by collectors. One potential drawback to having policy determined by the courts is that rulings may vary from judge to judge. In some estimation, court decisions can be all over the map, leading to a lot of confusion. Additionally, when lacking FTC guidelines state legislatures may take the lead. States are quicker to act than Congress and if they start to take action, it can result in a complex maze of new laws for the collection industry to navigate.


While the FTC said it has no immediate plans to revise FDCPA regulations to reflect the use of social media, it is quick to add that the consumer protections provided by the law when it comes to communication with a debtor do apply to social media.