A message from a debt collector may be the last thing you’re expecting — or wanting — to see when you log in to your social media accounts. A recent regulation change, however, made it legal for debt collectors to slide into your DMs.
Social Media Is Often the Only Way to Contact People
“A lot of people don’t use telephones anymore for contact, so social media is almost the only way to contact someone. I assume that’s why some collections agencies use that to identify and reach people,” Mike Sullivan, personal finance consultant with Take Charge America, says.
Since 2021, debt collectors have been allowed to contact folks on social media under the Fair Debt Collection Practices Act as long as they keep their messages private (they can’t post about a debt where the public or your friends can see it) and accurately identify themselves.
Beyond that, the rules around communication via social media are largely the same as those that apply when debt collectors reach out on any other media.
[14 Easy Ways to Pay Off Debt]
Keep in mind they still don’t have the right to harass or threaten you. And you can tell them how you want them to contact you going forward, whether it’s via social media, email, snail mail or phone.
“A lot of times, I recommend that you tell them you only want to correspond through the mail,” Ashley Morgan, bankruptcy attorney and owner of Ashley F. Morgan Law in Herndon, Virginia, says.
“Then you have a paper trail. Tell them to send you everything in writing; you don’t want to correspond in any way besides via the postal service,” she adds.
Don’t Ignore a Debt Collector
“It’s never a good idea to ignore a debt collector,” Robert Koehler, professor of business law and ethics at Ohio University, says. “If you don’t think you owe a debt or don’t know what debt they’re talking about, there are methods and processes that can allow you to gain that understanding.”
You also have the right to ask debt collectors to cease communication entirely. But keep in mind that although that might make the communication stop, it won’t make the debt go away. If you’re not open to settling, the debt collector may move on to take legal action on the debt.
Before moving forward, make sure the person contacting you is a legitimate debt collector. Social media is a haven for scammers, so it’s important to ask them for their contact information. Once you have it, call the agency and confirm they work there.
[READ: What to Do When You’re Deep in Debt.]
Signs the Person Contacting You Might Not Be Who They Say They Are
A nonbusiness email address, pressuring you to settle the debt immediately or requests for information that they should already have — like your birthdate or Social Security number — are all things that might signal the person contacting you is not who they say they are.
Once you’ve confirmed their identity, you can negotiate your debt payment.
Debt collectors know they’re unlikely to get full payment on the debt, so they’re often open to finding a payment plan or amount that works for you.
Morgan says that she’s seen debt collectors settle for 20% to 30% of the debt but that her general rule of thumb is you’re getting a good deal if you can pay it down for less than 60% of its value.
[Read: Best Debt Settlement Companies.]
According to Amy Loftsgordon, foreclosure, collections and debt management editor at Nolo, publisher of do-it-yourself legal books and software, “The real important thing to note, once you reach an agreement, is to make sure that you have it in writing, and not in a text or on social media.”
“Get it on an actual piece of paper sent to you in the mail or in a PDF and signed by the debt collections agency,” she adds.
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Debt Collectors Can Now Use Social Media to Contact Borrowers originally appeared on usnews.com
