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 вЂњEZMONEY pay day loans,вЂќ вЂњEZ Loan Services,вЂќ вЂњEZ Payday Advance,вЂќ and вЂњEZPAWN payday advances.вЂќ 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 customersвЂ™ domiciles and workplaces for the intended purpose of gathering debts, which visits disclosed or risked disclosing to third-parties the presence of customersвЂ™ debts and caused or risked causing unfavorable work effects to those customers;
- communicated with third-parties about customersвЂ™ debts, including calling customersвЂ™ credit sources, supervisors, and landlords;
- deceived consumers using the danger of appropriate action, despite the fact that EZCORP would not refer customersвЂ™ 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.