CFPB Takes Action Against Business Collection Agencies Firm EZCORP, Inc. and Problems Face-to-face Business Collection Agencies Compliance Bulletin Blog Dodd Frank

CFPB Takes Action Against Business Collection Agencies Firm EZCORP, Inc. and Problems Face-to-face Business Collection Agencies Compliance Bulletin Blog Dodd Frank

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

EZCORP as well as its entities that are related supplied high-cost, short-term, short term 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 unjust and debt that is deceptive practices in breach associated with 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, including calling customers’ credit recommendations, supervisors, and landlords;
  • deceived consumers aided by the risk of appropriate action, despite the fact that EZCORP didn’t refer customers’ reports to your law practice or appropriate division;
  • lied about maybe not performing credit checks on loan requests, but routinely went credit checks on customers;
  • needed financial obligation payment by pre-authorized bank account withdrawals, and even though for legal reasons customer loans can not be trained on pre-authorizing re payment through electronic fund transfers; and
  • lied to customers by saying they are able to maybe not stop electronic withdrawals or collection telephone calls or repay loans early. Continue reading “CFPB Takes Action Against Business Collection Agencies Firm EZCORP, Inc. and Problems Face-to-face Business Collection Agencies Compliance Bulletin Blog Dodd Frank”