BENEFITS OF FEDERAL TRADE COMMISSION PLAN

Nov 30, 2015

The Federal Trade Commission has recently held a conference concerning Operation Collection Protection, a debt collection law enforcement measure. The latter aims to improve the collaboration between state and federal officials and to stop illegal and unfair tactics applied by debt collectors throughout the country. Minnesota and Illinois have already taken strong measures to fight illegal debt collection.

Debt Collection Industry In Minnesota And Illinois

During the FTC news conference, FTC Chairwoman Edith Ramirez, Minnesota Commerce Department Commissioner Mike Rothman, and Illinois Attorney General Lisa Madigan delivered important remarks concerning the debt collection industry.

As it was mentioned during the conference, Illinois and Minnesota regulators had taken measures to restrict deceptive activities carried out by collection agencies in recent years. One of these cases can be found below.

In July 2015, a Texas-based collection agency “Tucker, Albin and Associates Inc.” was fined $500.000 by the Minnesota Commerce Department. The agency had been harassing Minnesota’s small businesses for debt collection purposes. The investigation revealed that the agency had violated state and federal laws concerning the debt collections industry.

This was the largest debt collection penalty to be fined by the Minnesota Commerce Department. As Mike Rothman said during the conference, “Tucker, Albin and Associates’ ” debt collectors had been using caller IDs, pretending they were neighbors or family members. The agency’s employee training manual included instructions on how to use fake numbers and names. As a result, more than 100 businesses, including restaurants, farmers, body shops, construction companies, were recognized as victims.

It Is Interesting To Know

One of the interesting cases concerning the debt collection industry has to do with a fake debt collection scam located in Aurora, Illinois. In April 2015, the agency was charged for threatening consumers to pay short-term loan debts either they didn’t owe or the agency wasn’t authorized to collect. Since 2010, the defendants had been using different business names. As a result, the defendants had stolen hundreds of thousands of dollars from consumers.

It isn’t easy to find a reliable and secure high risk merchant account for your business. You should look for a dependable processor like EMB that will not drop a merchant account or raise processing fees in any case.

The debt collection industry is categorized as “high risk” and the collection agency industry can be unstable at times. However, EMB is the best option for collection agency merchants in the U.S. EMB understands the unstable nature of the industry and will take care of your collection agency merchant account both in times of prosperity and turmoil.

Debt collection agencies have sensitive financial information. This enables them to allegedly threaten consumers to garnish their wages or have them arrested. Thus, Operation Collection Protection, the 1st coordinated federal-state enforcement initiativ, is extremely important for stopping illegal debt collection practices in the field.

 

 

 

 

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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 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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