Collection Agency Complaints Jump Once Again

May 26, 2015

No one likes a collections agency. No one likes the calls to their home or workplace. However, it must be done carefully. Complaints rose 15% in March from February, and most of these are not from what we think of when we think of typical collections agencies. Nearly one-third of complaints were registered under the “other” category, which encompasses everything from health clubs to phone companies.

44% of these complaints seem legitimate, being that the calls were about outstanding debt. Only 6% were about illegal or unethical calls searching for someone via relatives or former employers. Lawsuits also rose dramatically in March, with Fair Debt Collection Practices (FDCPA) lawsuits rising 3.9% on a monthly comparison; Fair Credit Reporting Act lawsuits rising 3.3%; and Telephone Consumer Protection Act (TCPA) lawsuits jumped15.5%. Collection agency merchants need to remind their staff that they should take care in their job, and even when caller become snappy, they should keep their cool. Collection agency reps have some of the toughest jobs, and the vast majority of the public sees them as a nuisance. Debts must be collected, and it takes some people calls to their home and workplace to get a debt settled.

These new statistics can be tough on debt collection merchants who are searching for a collection agency merchant account. There are few who are true to their merchants, and when figures like this are made public, some tend to either jack up processing fees, or they start rethinking their account offerings. All high risk merchants at one time or another face issues concerning their accounts, and it is no different with collection agency merchant accounts. What is different is that the industry as a whole is thoroughly disliked. Government scrutiny does not help either, and while everyone has varying opinions about the government, the majority agree that collection agencies and their practices must be reined in.

Collection agency merchants need to watch industry data, as it can quickly affect your business. Be sure that your collection agency merchant account provider is also on top of all industry data and changes, as failing to do so can put your business in jeopardy.

 

 

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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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