The Office of Fair Trading (OFT) has agreed to ban debt collectors who have been using social-networking sites to hassle and embarrass people to cough up cash owed.

A spokesman at the OFT said that using this new method of communication was not a good way to run a business, but assured people they had only received a few complaints.

"It's unfair and improper and it makes that private correspondence public. It causes stress and embarrassment to the debtor," said the spokesperson. "It is not a widespread trend. We are future-proofing the guidance. We have had a couple of complaints which we have dealt with."

New guidelines by the OFT ensure that creditors will not be able to post messages on social-networking sites "that might potentially reveal that an identifiable person is being pursued for the repayment of a debt." The rule will apply to any company in the business of debt collecting, including banks.

The ruling, which will be enforced from immediate effect, also cracks down on debt collectors contacting people at inappropriate locations and at unsuitable hours.