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

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

On December 16, 2015, the buyer Financial Protection Bureau (CFPB) announced an enforcement that is administrative against commercial collection agency firm EZCORP, Inc. (EZCORP), for allegedly participating in unlawful business collection agencies methods in breach regarding the Electronic Fund Transfer Act (EFTA) additionally 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 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 with unjust and debt that is deceptive techniques in violation of this EFTA and Dodd-Frank. Particularly, the CFPB alleges that EZCORP:

  • made in-person visits to customers’ domiciles and workplaces for the true purpose of gathering debts, which visits disclosed or risked disclosing to third-parties the presence 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 sources, supervisors, and landlords;
  • deceived consumers aided by the risk of appropriate action, and even though EZCORP would not refer customers’ reports to your law practice or appropriate division;
  • lied about maybe not performing credit checks on applications, but routinely went credit checks on customers;
  • needed financial obligation payment by pre-authorized bank checking account withdrawals, despite the fact that for legal reasons customer loans may not be trained on pre-authorizing re re payment through electronic investment transfers; and
  • lied to customers by saying they might maybe maybe not stop electronic withdrawals or collection telephone phone calls or repay loans early.