Collection Agencies Are Not Your ''Friend''

10/26/10

If you've ever been subject to a call from a collections agency, you know that they can be ruthless in their efforts to obtain payment. Now the days where your phone and mailbox were the only methods of contacting consumers are over.

Collections agencies are starting to implement social-networking sites in order to track down those who owe money. The agencies aren't only using sites like Facebook to find consumers, but also to gather useful information, such as whether or not a person is making unnecessary purchases.

Additionally, some collectors may act ruthlessly, using Facebook in order to embarrass and harass a consumer until they've paid their debt.

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While some of the aforementioned activities do not violate any laws, a recent court ruling has prohibited some collectors from some of those dirty tactics.

The federal Fair Debt Collection Practice Act (FDCPA), a United States statute added in 1978 as Title VIII of the Consumer Credit Protection Act, seeks to prevent collectors from abusive practices, and encourages fair debt collection. Despite being passed in a world before the advent of the internet and Facebook, a recent court case in Minnesota shows that its tenants stand the test of time.

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In the case Sohns v. Bramacint, the plaintiff did not make her monthly car payments, and eventually, the lender sold the debt to a collection agency. The collections agency proceeded to make a series of deceitful and malicious attempts in order to collect the debt.

First, the agency attempted to trick the plaintiff by using an application that made the plaintiff's caller ID read the number of her mother-in-law. Next, the agency gathered information from the plaintiff's MySpace page. In an attempt to intimidate the plaintiff, they made remarks suggesting that something would happen to her ''beautiful daughter... while the sheriff [takes her] away.''

In this case, the plaintiff, citing the FDCPA won the judgment. The court stated that the agency engaged in conduct the natural consequence of which was to harass, oppress, or abuse the debtor in connection with the collection of the debt in addition to using false, deceptive, or misleading representations or means in collection of the debt.

In a Michigan case, a woman sued a collection agency for a minimum award of $25,000 after the agency allegedly harassed her via her MySpace page. She cited ''damage to her business and community reputation, extreme mental distress, aggravation, humiliation and embarrassment'' as the violations the agency was guilty of.

While such harsh actions are in violation of the law, consumers should be wary of accepting friend requests from persons they do not know, as collections agencies are likely to find any loop holes and implement them in their attempts to collect debts.