CFPB Takes Action Against Business Collection Agencies Firm EZCORP, Inc. and Problems In-Person Business Collection Agencies Compliance Bulletin We We Blog Dodd-Frank

CFPB Takes Action Against Business Collection Agencies Firm EZCORP, Inc. and Problems In-Person Business Collection Agencies Compliance Bulletin We We Blog Dodd-Frank

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

EZCORP and its particular entities that are related supplied high-cost, short-term, payday loan companies in Toledo OH short term loans, in 15 states from significantly 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 techniques in breach regarding 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 presence of customers’ debts and caused or risked causing negative work effects to those customers; communicated with third-parties about customers’ debts, including calling consumers’ credit sources, supervisors, and landlords; deceived customers because of the risk of appropriate action, and even though EZCORP would not refer customers’ reports to virtually any law practice or appropriate division; lied about perhaps perhaps not performing credit checks on loan requests, but routinely went credit checks on customers; needed financial obligation payment by pre-authorized bank account withdrawals, despite the fact that for legal reasons customer loans may not be trained on pre-authorizing re re re payment through electronic investment transfers; lied to customers by stating they are able to perhaps maybe not stop electronic withdrawals or collection telephone phone calls or repay loans early. (more…)

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