Gripes of Wrath: Debt Collection 2nd Highest Consumer Complaint Industry

Mar 04, 2015

Debt collectors are never popular with those they collect from, but for the Federal Trade Commission received the 2nd highest number of consumer complaints about the debt collection industry. According to the FTC’s 2014 Consumer Sentinel Network Data Book, debt collection trailed only identity theft, which has a streak of fifteen consecutive years as the most-complained about transgression, and came in ahead of imposter scams.

The debt collection is an important cog for many major companies when it comes to micro-collection of owed sums. Each small debt adds to a collective amount that is far too large to ignore but every telecommunications giant doesn’t have time to track down each delinquent bill. Yet, debt collectors often have a reputation as bullies who harass working class people to collect pennies on the dollar. This reputation comes from, of course, debt collectors that have bad business practices that DO bully and harass people.

Bad debt collectors get recycled and flushed out quickly as they often can’t hold onto the fundamentals of business to be successful. But, for the debt collector that doesn’t practice sketchy and illegal tactics, can actually maintain an open collection agency merchant account, and maintain a level of success, the report is mildly irritating.

The report is a consequence of the get-rick-quick dupes, who think debt collection is an easy route to success, combined with the fact that no consumer ever likes the person collecting their debt. High numbers of complaints are inevitable as debt collectors exist to complain to consumers about not paying what they owe. For these two reasons, debt collection finds itself in the company of actual illegal scams such as identity theft and imposter scams.

Identity theft led the way with 13% of the nation’s total complaints while debt collection and imposter scams both posted 11%. Debt collection edged imposter scams by approximately 4,000 complaints. The rest of the top 5, perhaps unsurprisingly, was rounded out by telephone and mobile services and banks and lenders.

While the report may come as no surprise to the honest merchants in the debt collection industry, it represents the struggle any merchant getting into the business can face. It’s not a popular business, consumers will not like you, and it’s easy to get into the trouble with the FTC. In short, the definition of high risk.

Let us help you get a high risk merchant account today!

Get Started

Award winning.

  • 2012
  • 2013
  • 2014
  • 2015
  • 2016

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.

Live Chat