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

the customer 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 techniques in breach regarding the Electronic Fund Transfer Act (EFTA) and also the Dodd-Frank Wall Street Reform and customer Protection Act of 2010 (Dodd-Frank).

EZCORP and its own relevant entities, supplied high-cost, short-term, short term loans, in 15 states from a lot 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 unjust and debt that is deceptive methods in breach 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 presence of customers’ debts and caused or risked causing negative work effects to those customers;
  • communicated with third-parties about customers’ debts, including calling customers’ credit recommendations, supervisors, and landlords;
  • deceived consumers with all the risk of appropriate action, despite the fact that EZCORP failed to refer customers’ reports to virtually any law practice or department that is legal
  • lied about maybe maybe 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, and even though for legal reasons customer loans can’t be trained on pre-authorizing re payment through electronic investment transfers; and
  • lied to customers by saying they are able to maybe maybe perhaps maybe not stop withdrawals that are electronic collection telephone telephone phone calls or repay loans early. Read more