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 customer Financial Protection Bureau (CFPB) announced an enforcement that is administrative against business collection agencies company EZCORP, Inc. (EZCORP), for allegedly doing unlawful commercial collection agency techniques in breach associated with the Electronic Fund Transfer Act (EFTA) additionally 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, quick unsecured loans, in 15 states from significantly more than 500 storefronts, beneath the tradenames “EZMONEY Payday Loans,” “EZ Loan Services,” “EZ Payday Advance,” and “EZPAWN payday advances.” The CFPB alleges that EZCORP involved with unjust and misleading business collection agencies techniques in breach of this 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 undesirable work effects to those consumers; communicated with third-parties about customers’ debts, including calling customers’ credit recommendations, supervisors, and landlords; deceived customers because of the risk of appropriate action, and even though EZCORP didn’t refer customers’ reports to virtually any attorney or appropriate department; lied about perhaps maybe perhaps not performing credit checks on loan requests, but routinely went credit checks on customers; needed debt payment by pre-authorized bank account withdrawals, despite the fact that for legal reasons customer loans can’t be trained on pre-authorizing re re payment through electronic investment transfers; lied to customers by saying they are able to maybe perhaps not stop electronic withdrawals or collection phone calls or repay loans early. Continue reading “CFPB Takes Action Against Business Collection Agencies Firm EZCORP, Inc. and Problems In-Person Business Collection Agencies Compliance Bulletin We We Blog Dodd-Frank”