When you think of car makers and legal trouble, you probably think of faulty airbags, faulty brakes, and faulty ignition switches. While true, Honda is now having to pay up for something less mechanical, and more financial. New York officials have levied a hefty $13.5 million dollar fine to Honda, due to their “jamming” of fake credit repair services to customers. This massive fine equates to about $900 per scammed customers. According multiple sources, many customers have more than $2,000 tacked on to their bill.
While credit repair services are mostly legit, there is a catch: They cannot promise to restore credit or improve credit. Credit repair services instead can help you consolidate your debts, and can help you pay off your debts in a shorter amount of time. No one can repair your credit or FICO score overnight, so please avoid any company that claims this. These scams are hurting legit credit repair merchants, who already have a hard time in today’s market. If you are a credit repair merchant, you know how tough the industry is. Many consumers do not believe that the industry is legit, and many in the financial and processing industry do not cater to your businesses.
The processing industry is tough, regardless of what industry you are in. Merchant account are becoming more and more difficult to find, and many times they are ill equipped for issues that may arise. The trend is that when a company (high risk or not) has a chargeback, their processing rates are increased, or the company is dropped by the processor. This doesn’t help anyone, and without a credit repair merchant account, credit repair businesses will fail. A merchant account allows businesses to accept and process plastic card payments. When a fraudulent issue arises, it is the merchant account processor who sorts out the issue. Fraudulent issues that are found to be positive result in chargebacks, which can run as high as 270% of the original charge. These chargebacks can damage a company – and its processor – so it is understandable why merchant accounts are being given out at a lower rate.
You need to make sure that you are looking in the right place for a merchant account. You need a high risk merchant account to house your credit repair merchant account. While it may take some research and hard work, these accounts do exist, and your company depends on them.