On December 16, 2015, the customer Financial Protection Bureau (CFPB) announced an enforcement that is administrative against commercial collection agency firm EZCORP, Inc. (EZCORP), for allegedly participating in unlawful business collection agencies methods in breach regarding the Electronic Fund Transfer Act (EFTA) and also the Dodd-Frank Wall Street Reform and customer Protection Act of 2010 (Dodd-Frank).

EZCORP as well as its associated entities, provided 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 in unjust and misleading business collection agencies methods in breach regarding the EFTA and Dodd-Frank. Particularly, the CFPB alleges that EZCORP:

made in-person visits to customers’ domiciles 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 negative work effects to those customers; communicated with third-parties about customers’ debts, including calling customers’ credit references, supervisors, and landlords; deceived customers utilizing the danger of appropriate action, despite the fact that EZCORP failed to refer customers’ reports to virtually any law practice or appropriate division; lied about perhaps maybe not conducting credit checks on applications, but routinely ran credit checks on customers; needed financial obligation payment by pre-authorized bank checking account withdrawals, despite the fact that for legal reasons customer loans may not be trained on pre-authorizing re payment through electronic investment transfers; lied to customers by stating they might perhaps perhaps not stop electronic withdrawals or collection telephone calls or repay loans early.

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