Add the state of Florida to the list of those opposed to Regulation F’s provisions allowing debt collectors to privately communicate with individuals over social media networks as well as text messages and email to attempt to collect unpaid debts. The Chief Financial Officer of the state sent a letter to Rohit Chopra, the Director of the Consumer Financial Protection Bureau, asking the agency to “reevaluate the merit” of the provisions because he “seriously” doubts how effective those channels will be.
The letter, written by Jimmy Patronis, says using social media, email, and text messaging will “cause further distrust in legitimate debt collection efforts” because those channels are being regularly used by scammers trying to take advantage of unsuspecting or uneducated consumers. “In fact, I have no doubt there are scam artists scheming right now on how to defraud consumers through these provisions by posing as debt collectors,” he writes in the letter.
Without getting into specifics, Patronis says “there are several other avenues for which debt collection companies can use to contact delinquent borrowers.” The letter does not state the there is a population of consumers who prefer to be contacted via email, text messaging, and even private social media messages, and that collectors should be allowed to communicate with consumers via the channels that consumers prefer — giving consumers the power to determine how they want to be communicated with. Nor does the letter take into account the massive number of robocall scams that occur, meaning that maybe phone calls should be added to the list of prohibited channels.
Instead, the letter says that the federal government should not “allow debt collectors to weaponize social media against Florida consumers.”
Here is a full copy of the letter:
Dear Director Chopra:
On behalf of the consumers of the state of Florida, I’m writing you today regarding provisions in new rules, which recently took effect by the Consumer Financial Protection Bureau (CFPB) that allow debt collection agencies the ability to contact debtors via email, text messages, and even on social media sites. I do not believe the federal government should allow debt collectors to weaponize social media against Florida consumers.
As the state’s Chief Financial Officer, my top concern is protecting Florida consumers from fraud. These days, there are too many online scams and threats taking advantage of consumers to allow debt collections companies to operate in this manner. In fact, I have no doubt there are scam artists scheming right now on how to defraud consumers through these provisions by posing as debt collectors. Currently, the Federal Trade Commission reports that the top category for fraud in Florida are imposter scams with over 43,000 reports in 2021 alone.
There are several other avenues for which legitimate debt collection companies can use to contact delinquent borrowers. I seriously doubt messages through text or social media will be effective in the long run and will cause further distrust in legitimate debt collection efforts.
I respectfully ask you to reevaluate the merit of these provisions and protect consumers from the pitfalls of online harassment, scams, and financial abuse. Please contact my office if you would like to discuss this matter further.
