Social Media & Debt Management


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Until now the collection of debt was largely a private matter. The combination of endemic middle class debt and the megaphone of Social Media might just end all that.

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Social Media & Debt Management

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  3. 3. 3<br />120 second version<br />of<br />how not to do it<br />
  4. 4. How Not To Do It<br />4<br />Apparently, the incident was not a bank-sanctioned activity, but was carried out by an individual or group of individuals<br />If nothing else, this is a lesson to businesses about having a social media policy in place and practicing the highest levels of transparency when it comes to the use of social media profiles and content<br />Debt collectors from ANZ bank in Australia have been caught setting up fake Facebook profiles in order to connect with debtors and get their contact details<br />Described as a single guy who enjoyed footy, poker and running on the beach, Facebooker“Max Bourke” managed to get up to 80 friends before getting stopped<br />ANZ has confirmed that several members of its debt collection department in Melbourne are facing disciplinary action over the incident<br />.<br />
  5. 5. How Not To Do It<br />5<br />The court found that because of the post to her MySpace page, she suffered<br />Damage to her business and community reputation<br />Extreme mental distress<br />Aggravation<br />Humiliation and embarrassment<br />Paula Newland fell behind on her payments in early January on her 2005 Chevy Impala<br />Debt collector shared that information on her MySpace page<br />Woman then filed a civil lawsuit against the collection agency accusing them of violating collections law by harassing her online, on the phone and in person. <br />She is asking for $25,000.00 in damages<br />
  6. 6. How Not To Do It<br />Debt collectors are using bait on Facebook to track down and keep track of debtors<br />The online construct “Jenny Anderson“ was the tool of professional skip tracers, to all 658 of her "friends"<br />6<br />
  7. 7. 7<br />How Not To Do It<br />
  8. 8. Brand Building<br />8<br />
  9. 9. 9<br />Understanding <br />the new politics <br />between <br />socially empowered customers <br />and brands<br />
  10. 10. Connectivity Causes A Shift In Power<br />10<br />
  11. 11. In How We Relate<br />11<br />
  12. 12. In How Well We Relate<br />12<br />
  13. 13. I Am A New Type Of Customer<br />13<br />
  14. 14. Snapshot Of The ‘Social’ World<br />14<br />
  15. 15. Broadcast v Listen<br />62%<br />Felt that ‘companies are only interested in selling products and services to me, not necessarily the product or service that is right for me’<br />15<br />
  16. 16. Transparency & Trust<br />7%<br />Trusted companies to ‘always act in their best interest’<br />16<br />
  17. 17. Self Generated Fantasy<br />9%<br />Trusted what the company says about itself<br />17<br />
  18. 18. Importance As Stakeholder<br />10%<br />Thought companies took note of what they said<br />18<br />
  19. 19. Trusted Advice<br />95%<br />Used some form of internet comparison site<br />formal and informal locations<br />friends, families, professional reviews<br />people they believe are similar to themselves<br />19<br />
  20. 20. Open To Dialogue<br />69%<br />Believed there would be a positive impact from companies taking more time to find out about their needs and interests<br />20<br />
  21. 21. Open To Participation<br />82%<br />Were interested in participating in product development<br />Believed it would make them more likely to tell others about the company<br />21<br />
  22. 22. Implications<br />22<br />
  23. 23. 23<br />More clues<br />on the changing script<br />between customers & brands<br />
  24. 24. How We Spend Our Time Online In UK<br />24<br />
  25. 25. Our Impact Is Now Very Public<br />
  26. 26. Imagine This<br />26<br />As the Western economies continue their relative decline, many consumers never recover from the recession<br />
  27. 27. Imagine This<br />27<br />Being in debt becomes a shared social experience<br />
  28. 28. Imagine This<br />28<br />What was a private matter between customer and debt collector loses its stigma as everyone ‘admits the disease’<br />
  29. 29. Imagine This<br />29<br />Debtors publically attack brand reputations via social Media to generate mass sympathy & avoid repayment <br />
  30. 30. Integrate This<br />30<br />Social activism of this type in US courts already reported <br />Online ‘early warnings’ of debt collection tactics already reported in UK<br />Conclusion<br />Debt management is slowly being politicised and made public <br />Method will now matter as much as outcome for DM brands<br />
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  32. 32. 32<br />THANX <br />FOR <br />READING<br />I also wrote a post<br />“Social Media & Debt Management”<br />to compliment this presentation<br />over at<br /><br />