CFPB Takes Action Against Business Collection Agencies Firm EZCORP, Inc. and Problems Personally Commercial Collection Agency 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 business collection agencies company EZCORP, Inc. (EZCORP), for allegedly doing unlawful commercial collection agency techniques in breach associated with Electronic Fund Transfer Act (EFTA) and also the Dodd-Frank Wall Street Reform and customer Protection Act of 2010 (Dodd-Frank).
EZCORP and its particular entities that are related supplied high-cost, short-term, unsecured loans, in 15 states from significantly more than 500 storefronts, underneath the tradenames вЂњEZMONEY pay day loans,вЂќ вЂњEZ Loan Services,вЂќ вЂњEZ Payday Advance,вЂќ and вЂњEZPAWN Payday Loans.вЂќ The CFPB alleges that EZCORP involved with unjust and misleading business collection agencies methods in breach associated with the EFTA and Dodd-Frank. Especially, the CFPB alleges that EZCORP:
- made in-person visits to customersвЂ™ domiciles and workplaces for the true purpose of gathering debts, which visits disclosed or risked disclosing to third-parties the presence of customersвЂ™ debts and caused or risked causing employment that is adverse to those customers;
- communicated with third-parties about customersвЂ™ debts, including calling customersвЂ™ credit sources, supervisors, and landlords;
- deceived consumers aided by the danger of appropriate action, and even though EZCORP would not refer customersвЂ™ records to your law practice or department that is legal
- lied about maybe maybe maybe not performing credit checks on loan requests, but regularly ran credit checks on customers;
- required financial obligation payment by pre-authorized bank checking account withdrawals, and even though for legal reasons customer loans can not be trained on pre-authorizing re payment through electronic investment transfers; and
- lied to customers by saying they might maybe not stop electronic withdrawals or collection phone phone telephone calls or repay loans early.