CFPB Takes Action Against Business Collection Agencies Firm EZCORP, Inc. and Problems Personally Business Collection Agencies Compliance Bulletin We We We Blog Dodd Frank

CFPB Takes Action Against Business Collection Agencies Firm EZCORP, Inc. and Problems Personally Business Collection Agencies Compliance Bulletin We We We Blog Dodd Frank

On December 16, 2015, the buyer Financial Protection Bureau (CFPB) announced an enforcement that is administrative against commercial collection agency company EZCORP, Inc. (EZCORP), for allegedly participating in unlawful business collection agencies methods in breach for the Electronic Fund Transfer Act (EFTA) and also the Dodd-Frank Wall Street Reform and customer Protection Act of 2010 (Dodd-Frank).

EZCORP as well as its entities that are related provided high-cost, short-term, quick unsecured loans, in 15 states from a lot more than 500 storefronts, beneath the tradenames “EZMONEY pay day loans,” “EZ Loan Services,” “EZ Payday Advance,” and “EZPAWN payday advances.” The CFPB alleges that EZCORP involved with unfair and misleading business collection agencies methods in breach for the EFTA and Dodd-Frank. Particularly, the CFPB alleges that EZCORP:

  • made in-person visits to consumers’ houses and workplaces for the true purpose of gathering debts, which visits disclosed or risked disclosing to third-parties the presence of customers’ debts and caused or risked causing undesirable work effects to those customers;
  • communicated with third-parties about customers’ debts, including calling customers’ credit sources, supervisors, and landlords;
  • deceived consumers because of the risk of appropriate action, despite the fact that EZCORP didn’t refer customers’ records to your attorney or appropriate division;
  • lied about maybe not credit that is conducting on loan requests, but regularly went credit checks on customers;
  • needed financial obligation payment by pre-authorized bank account withdrawals, despite the fact that for legal reasons customer loans may not be trained on pre-authorizing re re payment through electronic investment transfers; and
  • lied to customers by saying they might maybe not stop withdrawals that are electronic collection telephone telephone calls or repay loans early. Read more