Social media isn’t just for vacation pics or keeping up with old friends—it’s also a powerful tool for construction businesses, especially those in credit and collections roles.
Platforms like LinkedIn, Facebook, and even messaging apps offer new ways to connect with customers and gather valuable information. However, as with any tool, there’s a right way and a wrong way to use it, especially when legal and ethical considerations are at stake.
During a recent BuildingBlocks webinar titled Art of Espionage: Collections in the Social Media Age, Shane Norman CCE, Senior Enterprise Account Executive at Handle and a seasoned credit manager with over two decades of experience, shared his insights on this subject.
He discussed how credit professionals can responsibly leverage social media in their collections efforts without stepping into legal pitfalls or compromising their professional integrity.
Understanding the Legal Landscape
At the heart of responsible social media use in collections is a solid understanding of the legal framework governing debt collection practices. The primary law to be aware of is the Fair Debt Collection Practices Act (FDCPA).
The FDCPA is a U.S. federal law that protects consumers from abusive, deceptive, and unfair debt collection practices by third-party collectors. Some of its key points include:
- Harassment and Abuse Prohibited: Collectors cannot harass, threaten, or use profane language.
- False Statements Forbidden: Misrepresenting the amount owed or the collector’s identity is illegal.
- Communication Restrictions: Contact is limited to between 8 a.m. and 9 p.m. local time. Collectors must cease communication if requested in writing and cannot discuss debts with unauthorized third parties.
- Debt Validation Required: Collectors must provide a written notice of the debt and how to dispute it.
- Consumer Rights: Consumers can dispute debts and sue collectors for violations.
Understanding these provisions is essential for several reasons:
- Legal Compliance: Ensures collection efforts are legal and do not expose the company to lawsuits or penalties.
- Ethical Practices: Promotes fair and respectful treatment of consumers, preserving the company’s reputation and customer relationships.
- Navigating Modern Communication: As communication methods evolve, credit professionals must adapt their strategies while staying within legal boundaries.
Shane emphasized that the FDCPA’s provisions are not limited to traditional communication methods like phone calls and letters; they extend to digital channels, including social media. This means that if you’re considering sending a Facebook message to a customer about an overdue invoice, you must adhere to the same legal standards as with any other form of communication.
Best Practices for Using Social Media in Collections
To ensure compliance and maintain professionalism when using social media in collections, consider the following best practices:
- Get Permission Before You Reach Out
Before contacting a customer through social media, ensure you have their consent. Just because someone’s profile is public doesn’t mean they’re comfortable with businesses messaging them about debts.
- Keep It Professional
Always use official company accounts for outreach. This not only appears more professional but also helps keep your personal life separate from your work.
- Respect Privacy
Don’t attempt to bypass someone’s privacy settings to access information. If it’s not publicly available, it’s off-limits.
- Stay Out of Public View
Never discuss a customer’s debt where others can see it. Avoid public posts, comments, or anything that could reveal private financial information.
- Document Everything
Keep records of all your communications. Note when you sent a message and its content. This documentation can be crucial if there’s ever a dispute.
Ethical Considerations
In addition to legal obligations, ethical considerations play a crucial role in how you utilize social media information. Just because you can find information about someone online doesn’t mean you should use it against them indiscriminately.
For instance, if a customer claims financial hardship but you see them posting about a new car on Instagram, it might be tempting to confront them. However, using personal social media posts to pressure someone can damage your relationship and may be perceived as harassment.
Handle BuildingBlocks Community Manager Lori J Drake CBA emphasized the importance of maintaining personal and professional boundaries. By avoiding the use of personal accounts for business purposes, employees can protect their privacy and uphold the company’s reputation.
Protecting Your Reputation and Privacy
To safeguard both your and your company’s reputation:
- Use Company Accounts: Communicate through official channels monitored by your organization.
- Separate Personal and Work Profiles: This prevents accidental sharing of personal information and keeps interactions professional.
- Know Your Company’s Social Media Policy: Stay updated on any guidelines your company has in place.
Navigating Tricky Situations
While social media can be a valuable tool, it’s imperative to use the information ethically and responsibly. Always ensure that any decisions made based on social media information comply with fair lending laws and company policies. Avoid any form of discrimination or unfair treatment.
Don’t Be Deceptive
Another crucial aspect is to avoid deceptive practices altogether. Under the FDCPA and other laws, deceptive practices are strictly prohibited. To stay compliant:
- Be Honest About Who You Are: Always identify yourself and your company when reaching out.
- Don’t Create Fake Profiles: Pretending to be someone else to gather information is unethical and illegal.
- Tell the Truth: Ensure that all your communications are accurate and not misleading.
Action Steps for Credit Professionals
To make the most of social media in your collections work while staying legal and ethical, consider these steps:
- Stay Informed: Keep up-to-date with laws like the FDCPA and understand how they apply to social media.
- Create Clear Policies: Work with your team to develop guidelines for using social media in collections.
- Train Your Team: Ensure everyone knows the do’s and don’ts when it comes to social media.
- Review Your Practices: Regularly assess how you’re using social media to ensure compliance.
- When in Doubt, Ask: If you’re unsure about something, don’t hesitate to seek advice from your legal team.
By taking these steps, you can enhance your collections efforts while maintaining integrity and compliance. It’s all about balancing the powerful tools at your disposal with the responsibility that comes with them.
Social media is a valuable addition to your collections toolkit, offering new ways to communicate and gather information. However, it’s crucial to use it responsibly. By following legal guidelines, maintaining ethical standards, and upholding professionalism, you can leverage these platforms effectively without risking legal trouble or harming your reputation.