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Using Social Media in Collections

WHAT ARE ONLINE COLLECTION TECHNIQUES?

Online collection techniques are skills that collectors use to locate debtors on the Internet to try to collect on a debt.

In late 2007, the Federal Trade Commission held a public workshop to evaluate the need for changes in the debt collection system, including the FDCPA, in order to protect consumers better. The goal of this two-day workshop was to explore changes in the collection industry and examine their impact on consumers and businesses. Based on the results they found during those 48 hours, the FTC concluded that the debt collection legal system needs to be reformed and modernized to reflect changes in consumer debt, the debt collection industry, and technology, while protecting consumers and without unduly burdening the debt collection industry.

In my experience, technology continues to change the debt collection environment by solving problems, enhancing debt collection processes, and automating functions. Most new tools make processes more cost effective and efficient, since, the Internet has forced collectors to be educated and actively involved online. Some examples of types of online collection websites are skiptracing websites, such as searchamerica.com, Merlin data, court records, or anything online that can help a collector locate a debtor.

Consumer credit is a critical part of today’s economy, whether it is good or bad. Credit allows consumers to purchase goods and services for which they are unable or unwilling to pay the entire cost at the time of their purchase. Extending credit requires creditors to take the risk that the consumer will not be able to repay all or part of the money they owe. If consumers do not pay their bills, creditors will become less willing to take on that risk, and may be more likely to increase the cost of extending credit.

Technological innovations have given debt collectors more efficient and effective methods for tracking and contacting consumers. The FTC believes that there are two major problems with the flow of information from creditors to debt collectors and from debt collectors to the consumer. The first is that debt collectors often have inadequate information when they contact consumers, which increases the likelihood that they will reach the wrong consumer and try to collect the wrong amount. The second is that the debt collectors do not provide adequate information to the consumer. This makes it more difficult for consumers to assess whether they actually owe the debt in question and should exercise their rights under the FDCPA.

There are many databases that allow people to register, join, and use their services to locate debtors. There are others that provide information on bankruptcy filings or whether a debtor is deceased.

Some collectors have reported finding a debtor’s location information in a news story or by Googling a name and checking out social networking pages. You could also set up Google Alerts for a specific name if you are having trouble finding that person; Google will then e-mail you each time that name is mentioned somewhere on the Web. Additionally, many local and national newspapers have their publications available online, so you can receive an alert if the person you’re seeking is mentioned in any story.

According to the February 2009 workshop report by the Federal Trade Commission, database technology has changed the techniques that creditors and debt collectors use to find consumers. As recently as 20 years ago, collectors’ attempts to locate a consumer were limited to calling references, trying to find neighbors through reverse-look-up directories, or visiting consumers in person. Nowadays, you can obtain location information by accessing huge electronic databases that collect consumer information such as telephone numbers, social security numbers, real estate records, court records, marriage records, addresses, names of relatives, and others living at the same address. Free telephone directories are also available on the Internet, providing information nationwide. Some databases also provide information on whether a debtor has filed or been discharged from bankruptcy proceedings or is deceased.

FINDING DEBTORS USING SOCIAL NETWORKING WEBSITES

Social networking sites are venues where people can exchange personal or business information with others through a forum specifically designed to make it easy to share text, pictures, documents, music, videos, and other data and comments. There are thousands of social networking sites out there today; some focus on particular industries, interests, subjects, or topics. Members can join most of them for free, create a profile, and add anything they would like. They also use them to connect with other like-minded people who are also members.

Many collectors nowadays use social networks to find debtors, since many debtors have public profile pages on social sites. Collectors can use these to find e-mail and mailing addresses, as well as home and cell phone numbers, places of employment, and other contact information. Collectors also utilize other online tools to locate debtors and verify information—tools such as search engines, blogs, message boards, posted videos, newsgroups, and photos.

Social media tools are used every day by collectors, more frequently as skiptracing tools than as a way to actually collect a debt. While sites such as Twitter, Facebook, or LinkedIn can help to locate a debtor, using any one of those websites to announce any type of pending or ongoing collection activity would violate the FDCPA in a multitude of ways. Utilizing social networking sites to gather information and investigate a person’s history requires a lot of work; even when it is successful, it often will give you only a single chance at getting a payment.

Many social media sites are geared towards certain audiences. LinkedIn is designed for business people wanting to network, while MySpace is focused on a younger crowd. One collector I know joined MySpace to search for her past-due customers that were under 30 years old. It’s important to know what demographics are using what sites. If you are looking for a target group of debtors within the same age group, you can look at the many social networking sites to see where your specific customers or debtors hang out. Remember when you’re checking out the profiles that these individuals may have links on their social networking page to other websites or blogs in which they participate, and you may be able to use them to gather more information.

THINGS YOU CAN FIND ON SOCIAL NETWORKS THAT CAN HELP YOU AS A COLLECTOR

The first thing many collectors do in order to locate a debtor or get information is visit social networks. People make themselves very easy to find these days, and they post all kinds of personal information that is helpful in tracking them down. Some pieces of valuable information you can find posted on social networks are:

• Birth date
• Address
• Employment information
• Asset information

Just a name and a birth date allow a collector to search public records on any individual. Each social networking site differs in terms of the specific information they offer and processes by which you can search. I discuss a few in details in the next sections.

FACEBOOK

Many people have asked me what you can find on each specific social site. Since I am not familiar with all of them in detail—and don’t know what the inquiring individuals are looking for—I recommend that you simply begin with the basics. A Facebook profile can include some of the following information, depending on whether the person is a “friend” and what level of privacy settings they have established.

• What someone looks like (depending on what they’ve chosen for a profile photo).
• Their current city and state.
• Their friends—you can see if there are any “mutual” acquaintances to connect you.
• Their “likes” and other pages to which they’ve linked.
• Links to other social networks in which they participate.
• Their status or updates, which might include information about when and where they spend money, get a new job, buy a house, or get a raise or bonus.

You can then click on the tabs at the top of the profile for more information. For example, if you click on Info, you can possibly discover a hometown city and state; information about or links to siblings, relatives, or significant others; an e-mail address, IM name, or physical or mailing address; and an employer and where it is located. Some people have all kinds of photos available as well, so if you are trying to serve them any legal papers, you now know what they look like. While not everyone provides all of this information, you will be surprised at how many do so in great detail.

It is worth mentioning that in December 2008, the Supreme Court of the Australian Capital Territory ruled that Facebook is a valid protocol for serving court notices to defendants. It is believed to be the world’s first legal judgment that defines a summons posted on Facebook as legally binding. And in March 2009, New Zealand High Court associate justice David Glendall allowed for the serving of legal papers on Craig Axe by the company Axe Market Garden via Facebook.

Never forget that your customers, colleagues, clients, managers, and investors are on Facebook, Twitter, LinkedIn, or other social networking websites too. In fact, 78 percent of retailers surveyed by the e-tailing group, inc. have a Facebook page, and 64 percent have a Twitter account.

MYSPACE

When you look on MySpace for a debtor’s name, make sure to try to narrow your search by using the form on the right hand side. Here, you can input the city and state if you know them, zip code, gender, age, and more. Since there are so many people with the same name, you want to make sure you always have the right person. When you visit someone’s MySpace profile, you will immediately see a picture (usually of the person). They often list their age, gender, city, state, and country next to that picture, as well as whatever they have written about themselves and their lives. This can include information about their jobs, can tell you if they own anything, or are moving, buying a car, or making any other substantial purchases or decisions in their lives. This can help when you are making collection calls, because they are probably telling you the truth if what they offer matches what you’ve seen on MySpace. If you keep looking down the left hand side of the profile you can also find their occupation, which can help you as you search for places of employment. You can also discover a user’s education and employment history as long as they filled that portion out.

TWITTER

Twitter is a social networking website that allows its users to share and discover what is happening right this moment, anywhere in the world. More and more companies and brands are joining the Twitter network. The site gives anyone who signs up the ability to send and read messages known as tweets, which are text posts of up to 140 characters displayed on that user’s profile page and on the pages of their followers. Most people use Twitter to communicate or keep in touch with friends and family by telling them what they are doing or asking questions. Many also use the site to follow brands in which they have an interest, and to find out about special events, deals, sales, or new products.

Using Twitter to locate a debtor can result in a photo, name of city and state, possibly a website if they have one, or perhaps an employer’s website. You can read their tweets to see what they have been up to and where they have been. Are they looking for a job, buying a car, or going through bankruptcy? Are they currently out of the state or country? Are they dealing with other difficult personal, professional, or financial issues?

While the Twitter search tool actually isn’t the best way to find people on Twitter, it is a good start. Just click on “Find People” at the top of the page and insert the name of the person you are looking for. Although you can search for people’s names through Twitter, there are also other ways to search.

You can also use a website like Tweepz, which lets you limit searches to specific parts of Twitter’s user information (like name, bio, and location). Additionally, you can filter results by follower/following numbers, location, and other terms to greatly improve on your results. Another Twitter search tool is called TweepSearch, which lets you search by Twitter name, location, or a specific username.

SOCIAL MEDIA SUCCESS TIPS

The following are my top four tips on how to most effectively use social networks to locate debtors and improve your business.

• Don’t worry or analyze too much about taking the social media plunge. This is one time when you should follow the pack and participate in what everyone else is doing.
• As with any networking event—listen before you “talk.”
• Track conversations with keywords as well as personal, company, and executives’ names. Use Google Reader and Google Blog Search (both free tools) to track them.
• Practice participating in various social media sites so that you understand how they work. Many potential debtors spend hours on these websites and know them inside out.

The following are a few oft-repeated myths about social media.

• It’s a passing fad. Social media is here to stay and growing every day.
• It is something you can control. Users control social media, not the viewers. You can only control your reaction.
• It only requires a one-time set up. You cannot just set up a profile or join a social media site and leave it, and then expect to reap the benefits. You must be active and log into your account. Social media is something you have to work at and keep learning about for it to be effective.
• There are no rules. Some people believe they can do and say whatever they want without consequences. This certainly isn’t the case on social media sites or anywhere else (although it may help you locate debtors or businesses that owe money).