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TRANSCRIPT
Using Social Media to Collect DebtKEVIN MAR FAN
LARMAQ , 7 OCTOBER 2015
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Outline1. What is social media?
2. Who’s using social media?
3. How can I use social media to collect my debts?
4. What are some common guidelines?
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What is Social Media?• Noun: websites and applications that enable users to create and share content or to
participate in social networking (Source: Google)
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Global reach at speedKey enablers include:
• Ease of access to the Internet via WiFi and mobile
• Rise of “digital natives” who are comfortable around technology
• New business models that remove old barriers to take up like upfront cost
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Who’s using social media?• Stats prove it – Aussies love their technology!!
• 79% of Australians access the Internet daily. Of this, 52% check in more than five times a day.• Only 4% go online less than weekly or never.• Average Australian has three devices to go online – laptop, mobile and tablet.
• 70% of users prefer smartphones to access the Internet.• 68% of Internet users have a social media profile – mainly to catch up with friends but it’s
changing.• In contrast, only 33% of businesses have a social media presence.
Source: Sensis Social Media Report May 2015
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Who’s using Social Media?• 18-‐29 year olds lead the way.
• Significant generational shift as this age group become council customers.
• However more than two-‐thirds of 30-‐64 year old Internet users access social media.
• Phenomenal growth between 2005-‐2010 that has plateaued somewhat since.
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How can I use social media?
Emerging communication channel with customers
Valuable skip tracing tool
Proactive as well as reactive tool
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What do I need to consider?
Does this comply with
Internet Usage policies?
How will we set up our social media profile?
How will you identify
yourself & your customers?
How much will we spend on this versus other tools?
How do I protect my
council’s brand online?
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What are the guidelines?• ASIC and ACCC requires that if a debt collector uses email, social media or similar technology
to contact you about a debt you owe, they must be reasonably sure that the account is not shared with another person and that their message cannot be viewed by anyone except you.
• Section 1 of the ACCC Guide To Debt Collection provides:(e) If you elect to use emerging technology to attempt to or make contact with the debtor, you should carefully consider the particular channel and its potential audience. It may be acceptable to attempt contact via emerging technology provided:you have a reasonable belief that contact will be with the debtoryou have a reasonable belief that the channel is not shared with other parties (for example, a shared work email address or joint social media account).
(f) You should avoid contacting the debtor via a certain channel (whether it is an emerging technology or a more traditional channel of communication) if:the debtor has specifically requested to be contacted through an alternate channel of communication, orthe debtor specifically requested that this particular channel not be used.
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What are the guidelines?• Section 3 of the guide incorporates emerging technologies such as social media into contact:
(a) ‘Contact’ with the debtor or other person is interpreted widely. It includes, but is not limited, to the following:Communications by phone—including circumstances where the recipient (debtor or other person) elects to terminate the call, or where a voice message is left on a recording device, or where a message of any kind is delivered to the recipient (for example, text message).Communications in writing—including all written correspondence (for example, letter, email, text message, fax, social media application or program, instant chat, phone application, or any other similar device).Communications in person—including face-‐to-‐face
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What are the guidelines?• Section 5 of the guide deals with emerging technology and frequency of contact telephone
and other contacts (including letters, emails, text or telephone messages, social media channels):(e) Unnecessary or unreasonable contact by letter, email, SMS, telephone messages (whether left on a voicemail service, an answering machine or with a third party), or by the use of social media channels or other technology must also be avoided.Example: Contact using social mediaIf you use social media such as Facebook to contact the debtor, then you must ensure such contact is not excessive and is always for a reasonable purpose; otherwise the contact may amount to undue harassment. You must also observe your privacy obligations when using such forums to make contact with the debtor.
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What are the guidelines?• Section 8 of the guide deals with privacy:
(f) Caution should be exercised when leaving messages for the debtor that may be seen or accessed by third parties, for example:at no stage should contact be made by a debtor’s social media account that would compromise the debtor’s privacy, for example, placing a message for the debtor in a way that would allow anyone other than the debtor to view it.
• Section 17 of the guide deals with conduct towards the debtor:(b) You should never:embarrass or shame a debtor—for example, by sending open correspondence to a shared post-‐box, posting messages for the debtor in a public online forum (for example, using social media sites), making the debtor’s employer or co-‐workers aware that the debtor is being pursued for a debt, or creating an impression that the debtor is under surveillance.
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What are the guidelines?• In the glossary to the guide and within the definition of communication:
Communicate: unless otherwise specified, includes communication by telephone, mobile telephone, fax, email, letter, in writing via text message or online technology (such as social media channels), and in person.
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Example – Sale of Land for Rates• A vacant lot belonging to an overseas owner was due to be sold for rates arrears by a major
Australian council
• Council officers tried various methods to contact the owners including skip tracing, mail, site visits, speaking to neighbours and even contacting the embassy for help. No email address was available.
• Officers finally used social media, specifically LinkedIn. After repeated searches, contact was made with the owners.
• Payment was made and the property no longer needed to be sold.
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Table Discussion
1) How does your council currently use social media?
2) What barriers do you see in making more use of social
media for collections?
3) How could you use social media to
communicate with customers about upcoming bills and payment and resolve
issues?
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In Summary• Australians love technology with over two thirds using social media.
• Social media adoption is slower in business and government and represents a significant opportunity as younger generations become customers.
• It is only one of the many tools at our disposal. Have a plan.
• Identity and confidentiality are important considerations. See ASIC and ACCC guidelines.
• Social media can be both proactive and reactive tool.
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References• Sensis Social Media Report May 2015 www.sensis.com.au/socialmediareport
• ACCC Debt Collecting Guidelines
• ASIC Smart Money website
• Pew Research Centre
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