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

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

On December 16, 2015, the buyer Financial Protection Bureau (CFPB) announced an administrative enforcement action against commercial collection agency company EZCORP, Inc. (EZCORP), for allegedly participating in unlawful commercial collection agency techniques in breach of this Electronic Fund Transfer Act (EFTA) therefore the Dodd-Frank Wall Street Reform and customer Protection Act of 2010 (Dodd-Frank).

EZCORP and its particular associated entities, 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 in unjust and misleading business collection agencies techniques 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 negative employment effects to those customers; communicated with third-parties about customers’ debts, including calling customers’ credit sources, supervisors, and landlords; deceived customers aided by the risk of appropriate action, despite the fact that EZCORP didn’t refer customers’ reports to your law practice or appropriate division; lied about perhaps perhaps not performing credit checks on loan requests, but regularly ran credit checks on customers; needed financial obligation repayment by pre-authorized bank checking account withdrawals, despite the fact that for legal reasons customer loans can not be trained on pre-authorizing payment through electronic investment transfers; lied to customers by saying they are able to not stop electronic withdrawals or collection phone telephone phone calls or repay loans early. Continuer la lecture de CFPB Takes Action Against Business Collection Agencies Firm EZCORP, Inc. and Problems In-Person Business Collection Agencies Compliance Bulletin We Blog Dodd-Frank