Categorieën
payday loans fees

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

CFPB Takes Action Against Business Collection Agencies Firm EZCORP, Inc. and Problems Face-to-face Commercial Collection Agency Compliance Bulletin 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 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 particular relevant entities, supplied high-cost, short-term, short term loans, in 15 states from a lot 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 in unjust and debt that is deceptive methods in breach for the EFTA and Dodd-Frank. Especially, the CFPB alleges that EZCORP:

  • made in-person visits to customers’ domiciles 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 customers;
  • communicated with third-parties about customers’ debts, including calling customers’ credit recommendations, supervisors, and landlords;
  • deceived consumers utilizing the risk of appropriate action, despite the fact that EZCORP failed to refer customers’ reports to virtually any law practice or appropriate division;
  • lied about maybe 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, despite the fact that for legal reasons customer loans may not be trained on pre-authorizing re payment through electronic investment transfers; and
  • lied to consumers by saying they are able to maybe maybe not stop electronic withdrawals or collection telephone phone phone calls or repay loans early.