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Let me make it clear about CFPB Fines Payday Lender $10M For Debt Collection techniques

Let me make it clear about CFPB Fines Payday Lender $10M For Debt Collection techniques

David Mertz

Global Debt Registry

Yesterday, the CFPB announced a permission decree with EZCORP , an Austin, Texas-based payday loan provider. The permission decree included $7.5 million in redress to customers, $3 million in fines, while the extinguishment that is effective of pay day loans. In July for this 12 months, EZCORP announced which they had been leaving the buyer financing market.

The permission decree alleged a true amount of UDAAP violations against EZCORP, including:

  • Manufactured in individual home that is“at commercial collection agency efforts which “caused or had the prospective to cause” unlawful 3rd party disclosure, and frequently did therefore at inconvenient times.
  • Built in individual “at work” commercial collection agency efforts which caused – or had the possibility to cause – injury to the customer’s reputation and/or work status.
  • Called customers in the office once the customer had notified EZCORP to quit calling them at the office or it had been from the company’s policy to make contact with them at the office. Additionally they called recommendations and landlords trying to find the buyer, disclosing – or risked disclosing – the phone call had been an endeavor to gather a debt.
  • Threatened legal action against the customer for non-payment, though that they had neither the intent nor history of appropriate collection.
  • Promoted to customers they often pulled credit reports without consumer consent that they extended loans without pulling credit reports, yet.