Nov 30, 2015

“If we desire respect for the law, we must first make the law respectable.” – Louis D. Brandeis

On November 4, 2015, the Federal Trade Commission, an independent agency of the U.S. government, and other U.S. law enforcement officials announced the beginning of Operation Collection Protection. This is a coordinated federal-state enforcement initiative concerning deceptive and illegal or abusive debt collectors. The measure will help consumers be better protected.

Illegal Debt Collection

According to Operation Collection Protection, debt collectors cannot use deceptive or abusive practices for debt collection purposes. The measure isn’t about new legal actions or insights. In fact, it signals that regulators’ attempts against the debt collection industry will continue.

The initiative is developed to help U.S. regulators coordinate and inform other law enforcement bodies about existing illegal activities. To run this program, the FTC operates in partnership with the U.S. law enforcement, the Consumer Financial Protection Bureau, Department of Justice, Attorneys General from 47 states and the District of Columbia, and local law enforcement authorities.

30 law enforcement actions by state, federal, and local law enforcement authorities against illegal debt collection have recently been reviewed by the initiative. Illegal debt collection included such tactics as phone call harassment, false threats of litigation, wage garnishment, arrest, and the failure to provide consumers with legally required disclosures and notices, or to act according to local and state licensing requirements.

Given collection agency merchant accounts are high risk in nature, it is extremely important to choose a dependable processor on the market to enjoy competitive rates and secure payment gateway. Turning to EMB, agencies can get a reliable high risk account such as a collection agency merchant account for their business.

Consumers Vs. Debt Collection Agencies

As FTC Chairwoman Edith Ramirez mentioned, nearly 30 million people have at least 1 collection account, and U.S. debt collectors contact 1 billion consumers each year. She added that the majority of complaints received were about the debt collection industry. In 2014, they received more than 280.000 complaints from consumers who claimed federal authorities were related to all those cases.

Operation Collection Protection is called to prohibit the defendants from providing misleading representation of financial services and products. It doesn’t allow collectors to make a profit from customers’ personal information.

All interested collection agencies can contact EMB, number 1 provider of merchant accounts for the collection agency industry. The company is the preferred processor for industry-leading Collections Software and Collections Max.

It is interesting to note that a Texas-based collection agency, “Tucker, Albin and Associates Inc.”, was fined $500.000 as it was supposed to be harassing and threatening small businesses operating in Minnesota. The Minnesota Commerce Department had never imposed a larger penalty on a collection agency than the mentioned one.

Illinois Attorney General Lisa Madigan and Minnesota Commerce Department Commissioner Mike Rothman state most collection agencies are licensed and legitimate. However, consumers need to be better protected through strong measures and coordination.


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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.