The market research firm IBIS World reports that the debt collection industry represented a $13 billion market in the US as of May 2013. There are a bit more than 9.000 businesses in the industry that employ over 150.000 people. The majority of Americans use loans, credit cards, lines of credit to pay for their lifestyles. The overall household debt...
Debt collection has been growing in the recent years with the average US household debt rising to more than $130.000. Quite naturally, the most important role of a debt collection business is to be able to collect payment from clients. It’s important to note that the collections industry is still viewed as high risk by traditional banks and other financial...
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...
The process of collecting debts can be tricky to newcomers. It is generally unfavorable to startups as well. Traditional banks and many credit processing providers will stay away from you if you do not provide a thorough credit history. Inconsistent revenue streams are also an obstacle hindering the application process for merchant accounts. CFPB Reveals an Outline On July 28,...
When you typically collect a payment, how do you do it? By phone? In person? Regardless of the method, the same thing happens: You scan or enter the card info into your terminal, and then wait. You must stay in one place, as the terminal is connected to your computer and to the wall electrical outlet. You cannot travel, you...
Debt collection agencies are associated with getting their clients’ payments so not letting credit processing capability stop your agency before it even gets started. It is highly important for merchants to apply for a collection agency merchant account from a reliable payment processing company. Choosing the Best for Your Collection Agency Take your time to find a reputable payment processor...
Merchants running a debt collection agency know their business is “risky.” Debt collection can be rather tricky, so merchants should find a reputable payment processor in the field to apply for a merchant account. Reliable Collection Agency Merchant Account To minimize the risks associated with your debt collection business, you should consider turning to a trustworthy payment processing company like...
The National Consumer Law Center (NCLC) and the American Civil Liberties Union (ACLU) have recently filed a lawsuit against the US Department of Education. They requested the documents that showed the process of collecting student loan debt. The Lawsuit against the Education Department According to the Federal Reserve, in the last 8 years, the total student debt has doubled, reaching...
EMB, as a premier payment processing company, offers special rate plans to merchants involved in the collection agencies, hospitals, and medical billing industries. These exclusive rates can help you benefit from your business and increase revenue. Ideal Merchant Account Rates The rate plans offered by EMB are a perfect choice for those high-risk merchants who need reasonable options for credit card...
The Consumer Financial Protection Bureau (CFPB) has recently charged Citigroup Inc. (Citi), an American multinational investment banking and financial services corporation, with fines and restitution. According to Richard Cordray, CFPB Director, the bureau is currently developing new rules for the debt collection industry. The fine ($8 million) and restitution were imposed based on the following facts. The company was supposed...
