Social media platforms are not just for personal expression and networking; they have also become invaluable tools for business purposes. This is true to the extent that it is often difficult for a company to sustain success if it does not maintain a significant social media presence.
Additionally, social media is increasingly used by businesses in ways that allow them to both understand their customers – and to collect debts in the event of non-payment. For a business seeking to collect a debt, a debtor’s social media activity can provide valuable insights and information that can assist in the recovery process.
The value of social media activity
Social media platforms like Facebook, Instagram, LinkedIn and X can inadvertently reveal a lot about a debtor’s financial status and lifestyle. Posts about new purchases, vacations, employment updates or business ventures can indicate a debtor’s capacity to pay. Such information can be used to assess the current financial situation of a debtor more accurately.
For instance, a debtor who claims an inability to pay but frequently posts about expensive activities or high-value acquisitions may be prioritizing their expenses differently than they claim. This type of information can be crucial when a business needs to demonstrate to a court that a debtor has the means to pay their debt but chooses not to. Alternatively, if a debtor’s social media activity suggests that they are genuinely struggling, that information can help businesses to evaluate whether approaching alternative forms of collection efforts may be more effective than going to court would be.
At the end of the day, just like prosecutors often use social media activity to build their case against a defendant, companies can potentially use a debtor’s social media activity to more effectively pursue repayment when it is overdue.