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

December 16, 2020 No comments yet

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 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 regarding the Electronic Fund Transfer Act (EFTA) therefore the Dodd-Frank Wall Street Reform and customer Protection Act of 2010 (Dodd-Frank).

EZCORP as well as its 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 in unjust and misleading commercial collection agency techniques in breach regarding the EFTA and Dodd-Frank. Especially, the CFPB alleges that EZCORP:

  • made in-person visits to customers’ houses 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, including calling customers’ credit references, supervisors, and landlords;
  • deceived consumers using the danger of appropriate action, despite the fact that EZCORP would not refer customers’ records to virtually any law practice or appropriate division;
  • lied about maybe maybe not conducting credit checks on loan requests, but regularly went credit checks on customers;
  • needed financial obligation payment by pre-authorized bank account withdrawals, despite the fact that for legal reasons customer loans can’t be trained on pre-authorizing re re payment through electronic investment transfers; and
  • lied to consumers by saying they are able to perhaps maybe not stop electronic withdrawals or collection telephone phone calls or repay loans early.
    Continue Reading


Find Me On

 Subscribe in a RSS reader

Enter your email address:

Delivered by FeedBurner

Categories