Expert: Facebook friends could determine loan status

Some tech start-up companies offering financing options are peeking into credit histories, spending habits and payment plans of Facebook users’ friends to determine loan eligibility,

News 12 was told that the new trend is still in its early stages and some question if the tactic exists.

News 12 was told that the new trend is still in its early stages and some question if the tactic exists. (9/25/13)

THE BRONX - Some tech start-up companies offering financing options are peeking into credit histories, spending habits and payment plans of Facebook users’ friends to determine loan eligibility, according to a financial expert.

For instance, if a Facebook user has a friend with bad credit or a questionable status, it may cost them a loan.

Financial expert Gary Scheer says he does not agree with companies prying into the business of social media users and that a Facebook friend cannot accurately determine how money is spent elsewhere.

News 12 was told that the new trend is still in its early stages and some question if the tactic exists.

Scheer advises Facebook users to update their privacy settings in order to safeguard against the start-up companies.

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