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CFPB Takes Action Against Business Collection Agencies Firm EZCORP, Inc. and Problems Face-to-face Commercial Collection Agency Compliance Bulletin 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 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 participating in unlawful commercial collection agency methods in breach for the 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 entities that are related provided high-cost, short-term, short term 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 in unjust and misleading commercial collection agency methods in violation associated with the EFTA and Dodd-Frank. Especially, the CFPB alleges that EZCORP:

  • made in-person visits to customers’ houses and workplaces for the intended purpose of gathering debts, which visits disclosed or risked disclosing to third-parties the existence 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 customers’ credit recommendations, supervisors, and landlords;
  • deceived consumers utilizing the danger of appropriate action, despite the fact that EZCORP failed to refer customers’ reports to virtually any law practice or appropriate department;
  • lied about not credit that is conducting on loan requests, but regularly went credit checks on customers;
  • needed financial obligation payment by pre-authorized bank checking account withdrawals, despite the fact that for legal reasons consumer loans is not trained on pre-authorizing re payment through electronic investment transfers; and
  • lied to consumers by saying they might maybe perhaps not stop electronic withdrawals or collection telephone telephone calls or repay loans early.