A Lawsuit Against N.Y. Debt Collectors

Feb 06, 2017

The Consumer Financial Protection Bureau (CFPB), an agency of the United States government responsible for consumer protection in the financial sector, and the New York attorney general filed a lawsuit in November 2016 against 2 New York debt collectors. The debt collectors were accused of deceiving and harassing millions of consumers to pay inflated debts.

The companies inflated consumer debts and misrepresented the amounts owned by consumers. They falsely threatened legal action and impersonated law-enforcement officials, government agencies, and court officials. The collection agencies send fake emails as if they were government agencies or court officials and harassed consumers and relatives with phone calls.

The lawsuit was filed against Douglas MacKinnon, a managing member of Enhanced Acquisitions, and Mark Gray, owner of Delray Capital. In 2014, the company owned by MacKinnin was renamed Enhanced. As it was stated in the lawsuit, they had created a large illegal debt collection scheme for the purpose of enriching themselves.

According to the lawsuit, filed in U.S. District Court for the Western District of New York, Gray and MacKinnon had created 60 debt collection firms aiming to purchase defaulted debts and carry out an illegal debt collection. The CFPB decided to close the operations of these collection agencies.

Merchants looking for a reliable and secure collection agency merchant account should consider turning to emerchantbroker.com, the top high risk payment processor in the US. EMB is rated A+ by the Better Business Bureau (BBB) and A by Card Payment Options. EMB is one of Inc. 500’s Fastest Growing Companies of 2016 and offers the lowest possible rates in the industry.

The suit stated that since 2009, the debt collection agencies had regularly been adding $200 to each debt acquired, no matter it was permitted or not by the underlying contract or state law. Consumers were often threatened with legal action by the collection firms, but no case was referred for prosecution. Once an employee at Enhanced told a consumer she didn’t have time to hire a lawyer as she would be arrested the following day.

The Bureau requested the court to impose penalties for the companies’ conduct and require compensation to be paid to consumers harmed.


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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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