Report Blames Education Department’s Oversight Of Collection Agencies

Aug 29, 2014
downloadA high-risk business option depends on the risk involved; some businesses are a higher risk than others and in the world of business, this can mean higher charges for services.

One of the businesses that are in the high-risk area are Collection Agencies, they are taking a risk in trying to claim back monies from companies or individuals that have defaulted on their payments. It is possible to secure a collection agency merchant account, they are essential if you are looking to retrieve payments for businesses.

However, it is important that you follow the rules and regulations in how you approach those people who are in default.

The U.S. Department of Education have let the companies collecting the defaulted student loans not follow the correct guidelines in how to collect overdue monies. They didn’t even ensure they were following the basic federal laws governing collection agencies. This resulted in a record number of complaints against the 22 collecting agencies.

What is more important to the citizens is the amount of money that is in defaulted payments; collection agencies are looking at reclaiming over $34 billion in 2013. However, the amount of money these collection agencies have collectively made in 2012 was $448 million and bonuses of $8.3 million. The bonus payments are not public, yet many believe no adequate checking is in place to ensure bonuses are fair and deserved.

Many people believe the systems that are in place are inadequate to cope with the demands of student loans. The agencies collecting the money needs to follow strict guidelines as to the way they approach those people who have defaulted on their loans. Menacing actions and tactics that are not legal are unacceptable and the Education Department needs to address the faults of the 22 collection agencies that it employs to collect defaulted student loans.

Therefore, if you are looking to enter the Collection Agency as a business, it is vital that you understand and follow the guidelines to ensure your business complies legally with all requirements.

To get started on right terms, contact us for a collection agency merchant account today!

start

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