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 customer Financial Protection Bureau (CFPB) announced an enforcement that is administrative against business collection agencies company EZCORP, Inc. (EZCORP), for allegedly doing unlawful business collection agencies methods in breach associated with the Electronic Fund Transfer Act (EFTA) plus the Dodd-Frank Wall Street Reform and customer Protection Act of 2010 (Dodd-Frank).

EZCORP and its own relevant entities, supplied high-cost, short-term, quick unsecured loans, in 15 states from significantly more than 500 storefronts, beneath the tradenames “EZMONEY Payday Loans,” “EZ Loan Services,” “EZ Payday Advance,” and “EZPAWN payday advances.” The CFPB alleges that EZCORP involved in unjust and misleading commercial collection agency techniques in breach of this EFTA and Dodd-Frank. Particularly, the CFPB alleges that EZCORP:

  • made in-person visits to customers’ 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 employment that is adverse to those customers;
  • communicated with third-parties about customers debts that are’ including calling consumers’ credit recommendations, supervisors, and landlords;
  • deceived consumers using the danger of appropriate action, despite the fact that EZCORP failed to refer customers’ reports to virtually any law practice or appropriate division;
  • lied about maybe not performing credit checks on loan requests, but regularly went credit checks on consumers;
  • needed financial obligation payment by pre-authorized bank checking 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 are able to maybe perhaps maybe not stop electronic withdrawals or collection telephone phone telephone calls or repay loans early. Continue reading “CFPB Takes Action Against Business Collection Agencies Firm EZCORP, Inc. and Problems Personally Business Collection Agencies Compliance Bulletin We We We Blog Dodd Frank”