Meanwhile, Lenddo reserves the right to e-publicly shame you to your friends and family when you fall behind on your payments.
Albeit creepy, since these companies disclose the invasive practices and get consent from potential borrowers, the companies may be in the legal clear with valid contractual agreements.
Another concern with banks using social media is the potential for credit and lending discrimination.
If banks take into account social media, they could gather information they aren’t legally allowed to ask for on a credit application — including race, marital status and receipt of public assistance — or worse, redline low-income groups and communities.
Dislike and De-Friend
A major issue with this model is that we aren’t really friends with all of our Facebook cohorts.
Does an occasional poke or “Happy Birthday! <|:-)” merit you and your friends’ financial histories — and futures — being intertwined? No. But whether you “Like” it or not, this is becoming a reality.
So it may be best to prune your friends list and think long and hard about that really nice friend of yours who fell behind on his car payments when he was unemployed.
For more information, visit Findlaw.com.