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.
- Share on
Free Training & Resources
Webinars
Provided by Yooz
White Papers
Provided by Anaplan
Further Reading
The 2022 End-of-Year Sales Tax Rates and Rules report by tax technology solutions provider Vertex Inc. has both good news and bad news for ...
Let’s be real: The enthusiasm behind real-time (or instant) payments stems almost entirely from the seller’s side of B2B. After...
Smart and efficient credit risk management is critical to the bottom line. It’s especially important if you’re like the many co...
Year-end close is when many finance teams are vulnerable to burnout from a seemingly endless, high-priority to-do list of generating annual...
Almost every company faces this scenario at some point: A small to midsize business customer is late making payment for a product or servic...
Corporate bankruptcy rates are at Great Recession levels last seen in 2009-10. The worse news? The year’s only a little more than hal...
