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

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

EZCORP and its own entities that are related supplied high-cost, short-term, short term 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 with unjust and deceptive business collection agencies techniques in breach regarding the EFTA and Dodd-Frank. Specifically, 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 undesirable work effects to those consumers; communicated with third-parties about customers’ debts, including calling customers’ credit sources, supervisors, and landlords; deceived customers utilizing the risk of appropriate action, and even though EZCORP would not refer customers’ reports to virtually any law practice or appropriate division; lied about perhaps perhaps not performing credit checks on applications, but routinely went credit checks on consumers; required 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 payment through electronic investment transfers; lied to customers by saying they might maybe not stop electronic withdrawals or collection telephone telephone calls or repay loans early.

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