Car Title Loan Collections
A new trend in car title loan and payday loan collections to track down debtors? Using social media such as FaceBook, Pinterest, Twitter, Instagram, etc. Payday loan and car title loan lenders are monitoring borrower’s social media accounts for clues as to a borrower’s ability to pay and where borrower’s are employed.
Text messaging, email, “friending” are all becoming popular with car title loan and payday loan collectors today.
Consumers just don’t have a clue! They’re revealing all kinds of private information enabling car title loan and payday loan collectors to get their money. Even the IRS is at it according to media reports.
Whether laws are being broken to collect on these outstanding debts is open to debate. Federal Trade Commission regulations don’t explicitly refer to social media. The FTC did address how text messaging can and can’t be used to lawfully collect debts. Regardless, it’s unlawful for a bad debt collector to harass a debtor or violate a debtor’s privacy. This often happens when debt collectors reach out to the relatives and friends of a debtor.
Horror stories abound of car title loan lenders sending text messages and making phone calls during which the debt collectors failed to disclose that they were car title loan debt collectors, threatening to sue and garnish wages from the debtors they were contacting, and revealing individuals’ debts to friends, families, and coworkers.
If you’re a payday loan or car title loan lender in need of new ideas for collecting bad debt owed to you and you’re tried all the typical skip tracing methods, read our Title Loan Collections Chapter in our “How to Start a Car Title Loan Business Bible.”