Businesses and collectors have the added challenge of trying to contact customers or debtors who may only use cell phones, have given up their land line phones and that use email, instant messages, social media websites and text messages as their primary form of communications. In this e-book, Using Social Media in Collections, the risks, laws, & mistakes you will learn how you can use social media web sites and new technology to maintain a good customer base, keep good paying customers on track, locate, verify, analyze and utilize in order to collect. Learn how these popular social networking websites can help improve your collections and what some of the most common mistakes are when using these social websites and how you can avoid them.

1. Using Social Media in CollectionsPresented by Michelle Dunn The Risks, Laws & Mistakes made by collectors

2. Businesses and collectors have the added challenge of trying to contact customers or debtors who may only use cell phones, have given up their land line phones and that use email, instant messages, social media websites and text messages as their primary form of communications. In this presentation, Using Social Media in Collections, the risks, laws, & mistakes you will learn how you can use social media web sites and new technology to maintain a good customer base, keep good paying customers on track, locate, verify, analyze and utilize in order to collect. Learn how these popular social networking websites can help improve your collections and what some of the most common mistakes are when using these social websites and how you can avoid them. Technology has changed how we all communicate and do business.

3. Online collection techniques are skills and techniques used by collectors on the internet to locate debtors to try and collect on a debt. Just what are online collection techniques?

4. Utilizing social networking sites to gather information and investigate a person’s history requires a lot of work, and even when it is successful, it often will give you only a single chance at getting a payment. Finding debtors using social networking websites

5. If a debtor states that this is their preferred way of communication and provides you with their email address, just be sure to keep that information in writing on their file. Also, include the Mini Miranda if you are a third party collector at the end of each email message. Email using social networks

6. The Federal Trade Commission feels that if a third party becomes aware of a debt through any method, such as email or instant messaging, the collector is and will be held liable for violating Section 805(b) of the FDCPA. Instant messages

7. As a creditor text messages and emails seem to be the preferred and most effective way to increase collections. One company I know has experienced a 12 percent lift in communication by using text messages and email. It seems that email or a text message as an avenue of communication is perceived as less evasive than a phone call, and your customer has the sense of being in control of when and if they respond. Text messages

8. Some collectors advise consumers that ask to be contacted by email that they are not able to accommodate their request by law. If the collection issue is a commercial collection, many collectors will communicate via email since the Fair Debt Collection Practices Act does not apply. Commercial vs. Consumer debtors

9. Some collection attorney’s or process servers say they have used the pictures people post on FaceBook or MySpace to help them get a physical description of a person so they can serve them with legal paperwork. LocatingDebtors using Social Media

10. Facebook MySpace Twitter When you are checking out the profiles of people you are looking for, remember that they may have links on their social networking page to other websites or blogs they participate in that you can gather more information from. Popular Social Media Websites

11. Something to remember is that as a debt collector, you may not publicize a debt or discuss it with anyone else other than the debtor, their spouse and/or their attorney, so using a social network to communicate with a debtor would fall into this category. Contacting debtors using social networks

12. Dos & Don’ts of using Social media in collections Do’s Don’ts E-learning Skip tracing or locating debtors Accepting debtor payments Researching collection tools, such as software or skip tracing tools Credit reporting Use database technology to maintain account information on customers that owe you money Access consumer payments only with authorization for EACH specific payment or transaction Researching place of employment Emailing debtors about a debt if you are a third party collector Instant messaging a debtor about a debt Initiating more payments on a bank account when additional transactions have not been authorized. Sending debt collection emails, faxes or text messages Don’t send a “friend request” to a debtor on any social networking website

13. Proof of Delivery & Proof of Sale Statements & Invoices Dunning Notices When Congress enacted the FDCPA, it did not limit the methods a debt collector could use to contact a consumer except for prohibiting the use of postcards but this was before any new technology. However, it is important to remember that the FDCPA was enacted to prevent debt collectors from engaging in unfair, deceptive or abusive conduct in using any method to collect a debt. New technology raises questions and issues not considered when the FDCPA was enacted. The FDCPA applies to third party collectors, business owners should check their specific state laws to see what they can or cannot do. Many state laws mirror the FDCPA laws. Debt Verification

14. What you Can & Cannot do What you CAN do… What you CANNOT do… Locate or find someone Verify information Maintain account information Obtain employment or mailing information Never converse with a debtor using social media sites, utilizing the email feature or comment feature. Do not email a debtor about a debt if you think a third party can ever see that email. Do not instant message a debtor about a debt. If a debtor doesn’t respond to your email after authorizing you to email them, stop emailing and use traditional methods to try and collect, such as phone calls or letters. Do not send any communication that could be seen by a third party. Never “publish” a list of names of debtors anywhere online. Do not make false reports to a credit bureau. Do not use a fake name or company name. Do not request to be added as a “friend” by a debtor on a social networking site

15. These social media websites and networks are tools, just like a credit report is a tool to a collector. This information is to be used in order to collect a debt, and not for any other purpose and without contacting the debtor through that medium. Think of these sites as another form of verification of the information you already have. The risks of using social media as a collection tool

16. The FTC has concluded that major problems exist in the flow of information within the debt collection system and debt collection laws need to be modernized to take into account the changes in technology since the laws were put in place. Laws regarding Social Media and Debt Collection

17. When you use a social networking site to locate a debtor mail, there normally won’t be a problem. The problems arise when someone contacts a debtor through one of these social websites. Since the information, messages or conversations on these types of websites is not private and is available to many people to see, this would not be a tool to use in debt collection without violating federal laws specifically applicable to consumer debt collections. Better safe than sorry – don’t utilize the email tools on these websites to contact someone who owes money. You can run into legal problems and violate privacy laws. Common Mistakes

18. I recently took a poll of the top online methods collectors use as debt collection tools. The top 2 answers were: Accepting debtors payments online Staying away from using the internet until the laws are changed Top Methods

19. Birth date Address Employment information Asset information Things you can find posted on social networks that can help you as a collector

20. Everyone is doing it, this is one time when you should follow the pack and participate Listen, just like any networking event listen before you “talk” Track conversations with keywords, names, company names, executives names and use Google Reader and Google Blog Search (both free) to track them. Practice participating in social medias so you understand how they work. Many people, who might be a debtor, spend hours on these websites and know them inside and out. Social Media Success Tips

21. It’s a passing fad. Social media is here to stay and growing by the day. It is something you can control. Social media is controlled by the users, not the viewers, you can only control your reaction. It’s a one time set up. Once you create a profile or join a social media website, you cannot just set up a profile and leave it. 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 for you. There are no rules. Some people believe they can do and say whatever they want without consequences. Though this may help you as a collector trying to locate debtors or businesses that owe money. Social Media Myths

22. Full 120 page February 2009 FTC Workshop Report: http://www.ftc.gov/bcp/workshops/debtcollection/dcwr.pdf Where collectors connect…online http://www.collectiontechnology.net/ American Credit & Collections Association Social network http://americancreditandcollections.ning.com RESOURCES for online collections

23. Online location or skip tracing websites Tweepz – online twitter search tool http://www.tweepz.com/ TweepSearch – another online twitter search tool http://tweepsearch.com/ Twellow – and yet another online twitter search tool http://www.twellow.com/ Public Records information www.publicrecordsinfo.com Public Records Finder www.publicrecordfinder.com Free Federal Court Dockets www.freecourtdockets.com Yahoo! People Search http://people.yahoo.com Find birthdates www.birthdatabase.com Better Business Bureau http://welcome.bbb.org Social Security Number Validator www.ssnvalidator.com County and ZIP code lookups www.usps.com/ncsc/lookups/lookup zip+4.html Search for blog posts www.whostalkin.com Search twitter postings http://search.twitter.com Search videos www.youtube.com www.searchvideo.org www.blinkx.com Find people www.zoominfo.com www.pipl.com www.zabasearch.com www.123people.com www.isearch.com

24. Skip tracing training: http://www.skiptraceconsultants.com American Credit & Collections Associations Collection Academy : http://www.credit-and-collections.com/pages/education.php Offering e-courses on Getting your customers to pay and the Fair Debt Collection Practices Act Training

25. Find anyone fast, easy to use guide to finding anyone anywhere, 3rd edition by Richard S. Johnson & Debra Johnson Knox, Private Investigators Naked in Cyberspace, how to find personal information online. The ultimate guide to what you can find out online about anyone. By Carole A. Kane, foreword by Beth Givens, Privacy Rights Clearinghouse Using Social Media in Collections e-book: http://www.michelledunn.com/shop/catalog.php?item=51 Online Collection Techniques: Do’s & Don’ts e-book : http://www.michelledunn.com/shop/catalog.php?item=49 Books

26. Michelle Dunn is an award winning author and columnist. She is the founder and CEO of the American Credit & Collections Association, one of the Top 5 women in Collections, and one of the Top 50 most influential collection professionals in her industry. Michelle has been quoted and featured in The Wall Street Journal, Smart Money Magazine, CNN & other National publications. In addition to writing and marketing her books, Michelle is a published columnist for 8 newspapers and national magazines including ‘Entrepreneur.com’ and “FIRST for Women” as well as an Editorial Advisor for “Collector Mentor” magazine and shares valuable credit & debt information with business owners on her blog. Strengthen your collections department with the titles in her “Collecting Money Series.” Visit www.michelledunn.com and www.credit-and-collections.com About Michelle Dunn