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

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

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

EZCORP as well as its associated entities, supplied high-cost, short-term, quick unsecured loans, in 15 states from significantly more than 500 storefronts, underneath 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 techniques in breach of this EFTA and Dodd-Frank. Particularly, the CFPB alleges that EZCORP:

  • made in-person visits to customers’ domiciles and workplaces for the intended purpose of gathering debts, which visits disclosed or risked disclosing to third-parties the presence of customers’ debts and caused or risked causing unfavorable work effects to those customers;
  • communicated with third-parties about customers’ debts, including calling customers’ credit sources, supervisors, and landlords;
  • deceived consumers using the danger of appropriate action, despite the fact that EZCORP would not refer customers’ reports to your law firm or department that is legal
  • lied about maybe not credit that is conducting on applications, but routinely went credit checks on customers;
  • needed financial obligation payment by pre-authorized bank checking account withdrawals, despite the fact that for legal reasons customer loans can not be trained on pre-authorizing payment through electronic investment transfers; and
  • lied to customers by saying they might perhaps perhaps perhaps not stop withdrawals that are electronic collection calls or repay loans early.
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