On December 16, 2015, the buyer Financial Protection Bureau (CFPB) announced an enforcement that is administrative against debt collection company EZCORP, Inc. (EZCORP), for allegedly participating in unlawful commercial collection agency techniques in breach for the Electronic Fund Transfer Act (EFTA) therefore the Dodd-Frank Wall Street Reform and customer Protection Act of 2010 (Dodd-Frank).
EZCORP and its own entities that are related supplied high-cost, short-term, quick unsecured loans, in 15 states from a lot 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 unjust and misleading business collection agencies techniques in breach associated with the EFTA and Dodd-Frank. Especially, the CFPB alleges that EZCORP:
- made in-person visits to customersвЂ™ domiciles and workplaces for the true 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 customers debts that areвЂ™ including calling customersвЂ™ credit recommendations, supervisors, and landlords;
- deceived consumers with all the risk of appropriate action, and even though EZCORP didn’t refer customersвЂ™ records to virtually any law practice or department that is legal
- lied about not conducting credit checks on loan requests, but regularly went credit checks on customers;
- needed financial obligation payment by pre-authorized bank account withdrawals, despite the fact that for legal reasons customer loans can’t be trained on pre-authorizing payment through electronic investment transfers; and
- lied to customers by saying they are able to maybe maybe perhaps not stop electronic withdrawals or collection telephone telephone calls or repay loans early. Continue reading 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