CFPB Takes Action Against Business Collection Agencies Firm EZCORP, Inc. and Problems Face-to-face Business Collection Agencies Compliance Bulletin We We Blog Dodd Frank
On December 16, 2015, the customer Financial Protection Bureau (CFPB) announced an administrative enforcement action against business collection agencies company EZCORP, Inc. (EZCORP), for allegedly participating in unlawful commercial collection agency techniques in violation associated with Electronic Fund Transfer Act (EFTA) as well as the Dodd-Frank Wall Street Reform and customer Protection Act of 2010 (Dodd-Frank).
EZCORP and its own relevant entities, provided 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 in unjust and misleading business collection agencies 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 consumers’ debts and caused or risked causing undesirable work effects to those customers;
- communicated with third-parties about customers debts that are’ including calling customers’ credit recommendations, supervisors, and landlords;
- deceived consumers utilizing the danger of appropriate action, and even though EZCORP failed to refer customers’ reports to virtually any law practice or appropriate division;
- lied about maybe maybe not credit that is conducting on applications, but regularly ran credit checks on customers;
- needed financial obligation payment by pre-authorized bank checking account withdrawals, and even though for legal reasons customer loans is not trained on pre-authorizing re re payment through electronic fund transfers; and
- lied to customers by saying they could not stop electronic withdrawals or collection phone telephone phone calls or repay loans early. 자세히 보기 →