JPMorgan Chase Settles with California Debtors

Nov 18, 2015

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.

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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.

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