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.