Can social media help a business collect on a debt?

Can social media help a business collect on a debt?

On Behalf of | Dec 12, 2023 | Firm News

Social media has proven to be a very valuable tool for businesses. It has never been easier to create a strong brand and to quickly connect with a specific demographic of customers. Targeted advertising on social media and the freedom of expression on social media platforms has made it easier than ever before for businesses to engage in highly effective and affordable marketing, even without a team of specialists.

Yet, social media isn’t just useful for converting fans and customers into new sales. It can also play a very important role in other aspects of company operations. Can different social media platforms potentially help a business collect on outstanding debts or past-due accounts?

Yes, social media can help with collections!

Provided that businesses are cautious about how they utilize social media, these websites and apps can be very useful for the purpose of debt collection. For example, when trying to secure payments on debts or past-due accounts, social media can help businesses locate debtors.

Creditors may be able to identify the debtor’s close relationships and even where they work from their social media posts. That can be a good starting point for a company seeking to aggressively collect on a debt. Social media platforms can also be a way to initiate direct communication with a debtor. However, businesses will need to very carefully comply with established standards.

First and foremost, any communication about debts on social media will need to be private. Additionally, every attempt at communication will need to give someone the opportunity to opt out of future communications. The person reaching out to the debtor will need to introduce themselves as a debt collector. Finally, the business will need to give the debtor the option of opting out from communication via that social media platform in every message

When companies follow the rules, social media can be useful both for communicating with individual debtors and improving a company’s skip tracing. The information available online can prove useful as a company attempts to locate a debtor, their employer or their resources for debt collection purposes.