New Debt Collection Rules For Merchants

Mar 17, 2016

Scott Walker, Wisconsin Governor, has signed a Wisconsin Consumer Act amendment. Debt collection rules and requirements are made easier and more clarified.

Changes to Debt Collection Laws

According to Assembly Bill 117, debt collectors can provide less information to file a lawsuit. Importantly, only a final billing statement accurately reflects the amount owed. As for consumers, they’ll find it more difficult to recover a lawyer’s fees.

With a 61-37 vote, the bill passed in the Assembly in November 2015. State Senator Paul Farrow was the author of its companion legislation that passed by a 19-13 vote in February before it was signed by Walker.

Representative Mark Born is the main sponsor of the bill. He believes these changes will eliminate ambiguities in the requirements concerning merchants trying to file a lawsuit.

The debt collection industry is regarded as high risk because of the risks associated with the field. Debt collection agents and agencies usually have difficulty getting approved for the account they need.

EMB can get you your debt collection merchant account without any challenges. Regardless of your credit history, you’ll get your merchant account set up in as little as 48 hours.

What To Expect

Wisconsin’s consumer protection lawyers think some debt buyers or collection agencies won’t take the changes calmly. An invasion of misdirected judgments and closed courts is also expected.

Vicky Selkowe of Legal Action Wisconsin also expressed his opinion. The law would bring forward a standard tied to the third-party debt buyers’ business model.

According to Mark Born, it will become easier to access and afford credit. He notes that a well-functioning credit market is important for the economy. A well-functioning legal system is necessary for proper enforcement of contracts.

Born believes AB 117 will clarify laws related to consumer credit debt collection lawsuits. Also, the bill will make it impossible to avoid paying debts. Finally, debt buyers will change the way they validate consumer debts.

The Legislative Reference Bureau notes an important point concerning an open-end credit plan. If the merchant hasn’t submitted the writings evidencing the customer’s obligation, the former’s obligation to attach these copies can be satisfied in the following case: the merchant provides a copy of this billing statement, which shows the total balance on the customer’s account.

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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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