Ez Payday LoansEquivalent Payday Loan
In 15 states, EZCORP and its affiliates granted high-value, short-term uncovered loans from more than 500 branches under the brand names "EZMONEY Payday Loans", "EZ Loan Services", "EZ Payday Advance" and "EZPAWN Payday Loans". "The CFPB claims that EZCORP has applied dishonest and misleading operating practises in breach of EFTA and Dodd-Frank.
In particular, the CFPB claims that EZCORP: carried out personal home and workplace consumer debt collection missions which revealed or threatened to disclose to third persons the presence of consumer debt and to induce or threaten to induce such consumer to incur harmful effects on jobs; communicates with third persons about consumer debt, involving calls to consumer reference numbers, regulatory authorities and lessors;
misled the consumer with the warning of recourse, even though EZCORP did not transfer the consumer's account to a lawyer's office or division; did not lie about carrying out consumer line of sight audits on consumer line of sight claims, but did carry out consumer line of sight audits on a routine basis; did not lie to the consumer by declaring that they could not stop making a withdrawal or an online call for payment, or that they could not pay back a consumer line of sight prematurely.
Under the CFPB Agreement, EZCORP is obligated: to repay $7.5 million to approximately 93,000 users who have made payment to EZCORP after EZCORP has personally made collections calls or made payment to EZCORP from unauthorised or unauthorised wire collections; to cease to collect dozens of million of outstanding payment days and instalment debts supposedly due from 130,000 users; and not to resell those debts to third party.
The EZCORP must also require that consumers' reporters change, erase or repress any adverse information relating to this indebtedness and impose a $3 million fine under public law. As well as taking measures against EZCORP, the CFPB published in 2015-07 Compliancy Bulletin to guide Dodd-Frank and Fair Debt Collection Practices Act (FDCPA) adherence by bondholders, debtors and third-party collectors. 1.
Regarding Dodd-Frank, CFPB Bulletin 2015-07 warned that personal collections represent an increased danger of perpetrating dishonest actions or practises that violate Dodd-Frank. In particular, an act or practise under Dodd-Frank is dishonest if it causes or is likely to cause significant harm to the consumer which is not reasonably preventable for the consumer and is not offset by contrary consumer or competitive advantages.
Individual debt recovery can cause significant damage to individuals, as third party debtors such as consumers' employees, superiors, clients, landlords, flatmates or neighbours can become aware of consumers' debt, causing damage to their reputation and other damage. Furthermore, face-to-face visitation at a consumer's place of work can cause damage to the latter if the consumer's employers prohibit face-to-face visitation.
The CFPB Bulletin 2015-07 also warned that personal collections effort represents an increased risk of infringing the FDCPA. Thus, for example, Section 805(a)(1) and (3) of the FDCPA forbids collecting agencies and other persons governed by law to communicate with a customer about a fault "at an abnormal moment or place or in an abnormal place or place known or uncomfortable to the customer" or "at the customer's place of work if the collecting agency knows or has reasons to believe that the consumer's employer is prohibiting the customer from accepting such communications.
" Since personal collections attempts may be uncomfortable to users or collections agencies may have reasons to believe that a consumer's employers prohibit users from accepting messages at their workplaces, such personal collections attempts may contravene the FDCPA. Furthermore, Section 805(b) of the FDCPA forbids third parties and other persons governed by law from communication with any third parties other than the customer in relation to the recovery of a claim.
As a result, local collections effort creates increased risk of local regulatory compliancy as collections companies are likely to engage with third party third party debtors during the collections process. Lastly, the CFPB Bulletin 2015-07 warned that personal collections effort poses an increased risk of breaching the FDCPA ban, that collections agencies engaged in behaviour whose inherent consequences are to molest, suppress or misuse a individual, and that they use unreasonable or inappropriate means to recover or seek recovery.
The EZCORP consent order can be viewed here: http://files.consumerfinance.gov/f/201512_cfpb_ezcorp-inc-consent-order.pdf. The CFPB Compliance Bulletin 2015-07 finden Sie hier : http://files.consumerfinance.gov/f/201512_cfpb_compliance-bulletin-in-person collection-of-consumer debt.pdf.