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

On December 16, 2015, the customer Financial Protection Bureau (CFPB) announced an administrative enforcement action against commercial collection agency company EZCORP, Inc. (EZCORP), for allegedly participating in unlawful business collection agencies 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 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. Particularly, the CFPB alleges that EZCORP:

  • made in-person visits to customers’ houses and workplaces for the intended purpose of collecting 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, including calling customers’ credit recommendations, supervisors, and landlords;
  • deceived consumers aided by the danger of appropriate action, despite the fact that EZCORP failed to refer customers’ reports to your law practice or appropriate division;
  • lied about maybe not performing credit checks on loan requests, but regularly went credit checks on consumers;
  • needed financial obligation payment by pre-authorized bank checking account withdrawals, and even though for legal reasons customer loans may not be trained on pre-authorizing re re payment through electronic investment transfers; and
  • lied to customers by stating they might maybe perhaps maybe not stop withdrawals that are electronic collection phone phone calls or repay loans early.