California debtors who filed a class-action lawsuit against JPMorgan Chase for unfair collecting practices can rest a little easier tonight. The company has settled the dispute for $100 million US dollars. This suit was brought forth in 2013, and it is sending a huge message to others in the collections industry. While the majority in the industry are reputable, some have poisoned consumer minds against the industry. Settlements like these can help, but these issues should never happen, under any circumstances.
JPMorgan Chase was accused of collecting inflated amounts, “robo-signing” legal documents, and other unfair collection practices. This is against the law, and the Feds recently settled another class action lawsuit in regards to these unfair business practices.
This happens more often than it is reported, and if someone is harassed by a creditor, it should be reported. The Feds, while they do overstep their boundaries sometimes with merchants, have enacted their fair credit practices to help debtors and merchants.
While we need debt collection merchants, this scandal with JPMorgan Chase reminds us that the industry is plagued with issues. From the lack of reputable debt collection merchant accounts to high chargeback rates, and even poor customer service, the industry is tough. Merchants must be dedicated to their cause, and they must make sure that every aspect of their business is tended to. While you may have a merchant account, you need to make sure that your processor is experienced in the debt collection industry. The industry is notoriously tough for merchants, and it takes a dedicated and educated merchant account processor to understand a debt collection merchant’s needs.
You also need to make sure that your customer service staff is professional. This is a big issue in the debt collections industry. While it can be a tough job, you need to educate your staff to be courteous, even when debtors are rude on the phone. No one wants to deal with a debt collections phone call, but they are necessary at times. Being kind and non-threatening if the only way to get a debtor to pay via phone call – and it keeps your business out of trouble.