Courts Throw Out Lawsuits Against Two Collection Agencies

May 26, 2015

Collection agency complaints are on the rise in 2015, but there is one bright side to the situation. Asset Acceptance and LVNV Funding were facing lawsuits regarding a supposed violation of the FDCPA, but the court sided with the companies. The lawsuits argued that the companies violated the FDCPA by using illegal tactics to collect debts. In the LVNV Funding case, it was claimed that the debt statute of limitations had passed, and that the company should not have contacted the debtor. This was tossed, with the court stating that the debt was still viable, and that the collection agency could still pursue it in various manners.

The second case with Asset Acceptance concerned the company’s filing proofs on time-barred debt. The court sided with the company, stating that the debtors were already protected by the state and federal bankruptcy codes, and that the acts of Asset Acceptance did nothing to further harm the individual. These cases should be watched by collection agency merchants, and they are sure to be appealed. Collection agency merchants already have it rough, since the industry is one of the most disliked in the USA. However, debts have to be collected, and since debtor’s prisons are constitutionally illegal, we have debt collectors.

This could also be an issue for those looking for, or currently holding, collection agency merchant accounts. With this industry, and little thing can cause processors to raise their fees, or even drop companies. Even companies with successful track records are sometimes prone to being closed out if the industry issue is bad enough. You need to make sure that your collection agency merchant account is handled by a processor who knows the ins and outs of the industry fully, like EMB. The industry can be lucrative, but it takes a strong business-minded personal to succeed in the industry. The help of a reliable and knowledgeable processor can help even further, and often times can be more helpful than the most friendly collection agency staff can be. Remember that before you make any changes to your business, you need to fully think about what you are doing. This is your livelihood, and the wrong decision can quickly turn it into a nightmare.

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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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