Using Social Media in Collections

Presented by Michelle DunnThe Risks, Laws & Mistakes made by

collectors

Businesses and collectors have the added challenge of trying to  contact customers or debtors who may only use cell phones, have given up their land line phones and that use email, instant messages, social media websites and text messages as their primary form of  communications.

In this presentation, Using Social Media in Collections, the risks, laws, &  mistakes you will learn how you can use social media web sites and  new technology to maintain a good customer base, keep good paying customers on track, locate, verify, analyze and utilize in order to collect.

Learn how these popular social networking websites can help  improve your collections and what some of the most common mistakes are when using these social websites and how you can avoid them.

Technology has changed how we all communicate and do business.

Online collection techniques are skills and techniques used by collectors on the internet to locate debtors to try

and collect on a debt.

Just what are online collection techniques?

Utilizing social networking sites to gather information and investigate a person’s history requires a lot of work, and even

when it is successful, it often will give you only a single chance at getting a payment.

Finding debtors using social networking websites

If a debtor states that this is their preferred way of communication and provides you with their email address, just be sure to

keep that information in writing on their file. Also, include the Mini Miranda if you are a

third party collector at the end of each email message.

Email using social networks

The Federal Trade Commission feels that if a third party becomes aware of a debt

through any method, such as email or instant messaging, the collector is and will

be held liable for violating Section 805(b) of the FDCPA.

Instant messages

As a creditor text messages and emails seem to be the preferred and most effective way to increase

collections.

One company I know has experienced a 12 percent lift in communication by using text messages and email.

It seems that email or a text message as an avenue of communication is perceived as less evasive than a

phone call, and your customer has the sense of being in control of when and if they respond.

Text messages

Some collectors advise consumers that ask to be contacted by email that they are not

able to accommodate their request by law. If the collection issue is a commercial

collection, many collectors will communicate via email since the Fair Debt

Collection Practices Act does not apply.

Commercial vs. Consumer debtors

Some collection attorney’s or process servers say they have used the pictures people post on FaceBook or MySpace to help them get a physical description of a person so they can

serve them with legal paperwork.

Locating Debtors using Social Media

Facebook MySpace Twitter

When you are checking out the profiles of people you are looking for, remember

that they may have links on their social networking page to other websites or blogs they participate in that you can

gather more information from.

Popular Social Media Websites

Something to remember is that as a debt collector, you may not publicize a debt or discuss it with anyone else other than the debtor, their spouse and/or their attorney, so using a social network to communicate with a debtor would fall into this category.

Contacting debtors using social networks

Dos & Don’ts of using Social media in collections

Do’s Don’ts

E-learning Skip tracing or locating debtors Accepting debtor payments Researching collection tools, such

as software or skip tracing tools Credit reporting Use database technology to

maintain account information on customers that owe you money

Access consumer payments only with authorization for EACH specific payment or transaction

Researching place of employment

Emailing debtors about a debt if you are a third party collector

Instant messaging a debtor about a debt

Initiating more payments on a bank account when additional transactions have not been authorized.

Sending debt collection emails, faxes or text messages

Don’t send a “friend request” to a debtor on any social networking website

Proof of Delivery & Proof of Sale Statements & Invoices Dunning Notices

When Congress enacted the FDCPA, it did not limit the methods a debt collector could use to contact a consumer except for prohibiting the

use of postcards but this was before any new technology. However, it is important to remember that the FDCPA was enacted to prevent

debt collectors from engaging in unfair, deceptive or abusive conduct in using any method to collect a debt. New technology raises

questions and issues not considered when the FDCPA was enacted. 

The FDCPA applies to third party collectors, business owners should check their specific state laws to see what they can or cannot do.

Many state laws mirror the FDCPA laws.

Debt Verification

What you Can & Cannot do

What you CAN do… What you CANNOT do…

Locate or find someone

Verify information

Maintain account information

Obtain employment or mailing information

Never converse with a debtor using social media sites, utilizing the email feature or comment feature.

  Do not email a debtor about a debt if you think a

third party can ever see that email.  Do not instant message a debtor about a debt.  If a debtor doesn’t respond to your email after

authorizing you to email them, stop emailing and use traditional methods to try and collect, such as phone calls or letters.

  Do not send any communication that could be seen

by a third party.  Never “publish” a list of names of debtors anywhere

online.  Do not make false reports to a credit bureau.  Do not use a fake name or company name.  Do not request to be added as a “friend” by a debtor

on a social networking site

1. These social media websites and networks are tools, just like a credit report is a tool to a collector.

2. This information is to be used in order to collect a debt, and not for any other purpose and without contacting the debtor through that medium.

3. Think of these sites as another form of verification of the information you already have.

The risks of using social media as a collection tool

The FTC has concluded that major problems exist in the flow of information within the debt collection system and debt collection laws need to be modernized to take into account the changes in technology since

the laws were put in place.

Laws regarding Social Media and Debt Collection

When you use a social networking site to locate a debtor mail, there normally won’t be a problem. The problems arise when someone contacts a debtor through one of

these social websites. Since the information, messages or conversations on these types of websites is not private and is available to many people to see, this would not be a tool to use in debt collection without violating federal

laws specifically applicable to consumer debt collections.

Better safe than sorry – don’t utilize the email tools on these websites to contact someone who owes money.

You can run into legal problems and violate privacy laws.

Common Mistakes

I recently took a poll of the top online methods collectors use as debt collection

tools. The top 2 answers were:

Accepting debtors payments online Staying away from using the internet until

the laws are changed

Top Methods

Birth date

Address

Employment information

Asset information

Things you can find posted on social networks that can help you as a collector

Everyone is doing it, this is one time when you should follow the pack and participate

Listen, just like any networking event listen before you “talk”

Track conversations with keywords, names, company names, executives names and use Google Reader and Google Blog Search (both free) to track them.

Practice participating in social medias so you understand how they work. Many people, who might be a debtor, spend hours on these websites and know them inside and out.

Social Media Success Tips

It’s a passing fad. Social media is here to stay and growing by the day.

It is something you can control. Social media is controlled by the users, not the viewers, you can only control your reaction.

It’s a one time set up. Once you create a profile or join a social media website, you cannot just set up a profile and leave it. You must be active and log into your account. Social media is something you have to work at and keep learning about for it to be effective for you.

There are no rules. Some people believe they can do and say whatever they want without consequences. Though this may help you as a collector trying to locate debtors or businesses that owe money.

Social Media Myths

Full 120 page February 2009 FTC Workshop Report:

http://www.ftc.gov/bcp/workshops/debtcollection/dcwr.pdf

Where collectors connect…onlinehttp://www.collectiontechnology.net/

American Credit & Collections Association Social network

http://americancreditandcollections.ning.com

RESOURCES for online collections

Online location or skip tracing websites

Tweepz – online twitter search tool http://www.tweepz.com/

TweepSearch – another online twitter search tool http://tweepsearch.com/

Twellow – and yet another online twitter search tool http://www.twellow.com/

Public Records information www.publicrecordsinfo.com

Public Records Finder www.publicrecordfinder.com

Free Federal Court Dockets www.freecourtdockets.com Yahoo! People Search http://people.yahoo.com

Find birthdates www.birthdatabase.com  Better Business Bureau http://welcome.bbb.org  Social Security Number Validator www.ssnvalidator.com

County and ZIP code lookups www.usps.com/ncsc/lookups/lookup zip+4.html

Search for blog posts www.whostalkin.com  Search twitter postings http://search.twitter.com  Search videos www.youtube.com

www.searchvideo.org

www.blinkx.com  Find people www.zoominfo.com

www.pipl.com

www.zabasearch.com

www.123people.com

www.isearch.com

Skip tracing training: http://www.skiptraceconsultants.com

American Credit & Collections Associations Collection Academy : http://www.credit-and-collections.com/pages/education.php

Offering e-courses on Getting your customers to pay and the Fair Debt Collection Practices

Act

Training

Find anyone fast, easy to use guide to finding anyone anywhere, 3rd edition by Richard S. Johnson & Debra Johnson Knox, Private Investigators

  Naked in Cyberspace, how to find personal information

online. The ultimate guide to what you can find out online about anyone. By Carole A. Kane, foreword by Beth Givens, Privacy Rights Clearinghouse

Using Social Media in Collections e-book: http://www.michelledunn.com/shop/catalog.php?item=51

Online Collection Techniques: Do’s & Don’ts e-book : http://www.michelledunn.com/shop/catalog.php?item=49

Books

Michelle Dunn is an award winning author and columnist. She is the founder and CEO of the American Credit & Collections Association, one of the Top 5 women in Collections, and one of the Top 50 most

influential collection professionals in her industry. Michelle has been quoted and featured in The Wall Street Journal, Smart Money

Magazine, CNN & other National publications.

In addition to writing and marketing her books, Michelle is a published columnist for 8 newspapers and national magazines

including ‘Entrepreneur.com’ and “FIRST for Women” as well as an Editorial Advisor for “Collector Mentor” magazine and shares

valuable credit & debt information with business owners on her blog.

Strengthen your collections department with the titles in her “Collecting Money Series.”

Visit www.michelledunn.com and www.credit-and-collections.com

About Michelle Dunn