1
EFG Credit Finance
Name
Institution
Course
Instructor
Date
2
EFG Credit Finance
Legal/Regulatory Provisions
The Federal Trade Commission Act (FTCA) as well as the Uniform Commercial Code
(UCC) are the legal and regulatory parts of the legislation EFG must follow while processing
payments. Federal Trade Commission (2018) states that the Truth in Lending Act, Fair Credit
Billing Act, and Fair Debt Collection Practices Act are among the legal and regulatory
regulations. A collection of uniformly chosen state rules known as the Uniform Commercial
Code (UCC) governs all business transactions in the US. Circumstances surrounding interstate
commercial interactions need uniformity of norms. The fact that the UCC principles are accepted
all around the globe gives traders the confidence to enter into contracts, knowing that the terms
will be applied consistently in all American jurisdictions (Cornelius, 2018). Due to the deceptive
and fraudulent nature of EFG policy number 5, legal action is being considered by UCC
regulations. The firm is unfairly charging people for something they have not done.
Protecting EFG against baseless, unnecessary credit charges and Visa practices is the
Truth in Lending Act (TILA). It requires financial institutions to collect upfront costs to do an
instantaneous review and seek certain types of credit (Garnett & Ashburn, 2024). If clients are
charged extra as a late penalty, even if they paid on time, they may take legal action against the
corporation according to this statute. To rectify Regulation Z of the Truth in Lending Act
(TILA), the government issued Fair Credit Billing Act T in 1947. Customers were supposed to
be protected from unfair billing practices by the law (Garnett & Ashburn, 2024). As a credit card
business, EFG is subject to the regulations in this act. The EFG corporation cannot execute
policy no. 5, which might be modifications if carried out. The Fair Debt Collection Practices Act
(FDCPA), approved on 20th September 1977 and has since been updated, is a user protection
3
legislation establishing legal protections against damaging debt collection practices under the
Consumer Credit Protection Act (Karerat, 2023). If EFG corporation decides to execute policy
no. 5 fraud, this legislation will shield the public from such actions and hold the corporation
accountable for deceptive and unfair business activities.
Ethical Theory
The activities of EFG in implementing these policy reforms are guided mainly by
utilitarianism. In order to maximize the company's utility, EFG is adopting these modifications to
improve revenues (Savulescu et al., 2020). A few EFG clients may feel the pinch due to these
changes; they may see a rise in late penalties, a fall in credit ratings, and trouble demonstrating
regular payments. Rule utilitarianism is a philosophical concept concerning the distinction
between moral as well as immoral decisions. It ensures that people should adhere to whatever
moral standards will have the most significant overall impact (Quiambao, 2022). From this point
of view, the long-term implications that people would be affected by and what really matters are
the individual goals behind making the choice rather than the immediate consequences of the
decision itself. An essential part of any definition of rule utilitarianism should be its status as a
subset of utilitarianism, the theory that a person's moral character may be best measured by how
much good they do for the world (Duignan & West, 2024). In everyday use, utility is defined as
the gap between the peak of pleasure and endurance experienced by an activity (Savulescu et al.,
2020). More utility, on the other hand, is comparable to more notable happiness and less
suffering. Ethically excellent norms, according to rule utilitarians, increase global happiness and
decrease suffering.
The policy is immoral and ethically incorrect. There has to be a policy shift at EFG, and
the bank needs to devise a new strategy that works for everyone. This dishonesty might lead to
4
the company's demise, financial losses, and legal trouble. As a result of the public's loss of faith
in the firm after the scam, it will be unable to do any further business. Over fraud and legal
issues, little earnings are preferable. Legal protections afforded to consumers mean that EFG will
have a tough time avoiding consequences if they choose to pursue legal action.
Manager of Processing Center
Policy 5 is something other than what I would implement as a processing center manager.
It seems immoral to purposefully impede clients' ability to pay on time. It would not benefit
consumers if this caused them to fall behind on payments and incur extra costs. Additionally, it is
critical to be forthright with clients when there are changes to payment arrangements. The EFG,
The company's image, might be hit if this strategy is implemented without consumer notice. A
business's most prudent course of action would be to notify consumers of any policies
beforehand. Notifying all relevant parties of any policy changes allows them to make informed
choices, which is both morally and ethically imperative (Agudelo et al., 2019). Their faith in the
organization must be preserved, as well as they must be apprised of any upcoming growths.
If I refused to execute policy no. 5, I would go against the company's wishes while
standing firm on my ethical and moral obligations. If EFG fires me for this decision, I may be
able to seek a wrongful dismissal lawsuit. I have the right to sue EFG for breach of contract and
public policy if I can demonstrate that the company's policy is immoral and that my dismissal
was due to my refusal to conform.
EFG's methods of processing payments bring up legal and ethical questions. I would not
put policy no. 5 into action as processing center manager. There may be grounds for a wrongful
dismissal lawsuit against EFG if my unwillingness to execute it leads to my termination. An
individual's morals are their guiding principles, which help them have a good outlook on life,
5
avoid damaging others, and behave in a manner that benefits all parties involved (Agudelo et al.,
2019). However, managers should always be careful to make both justified and ethically correct
judgments, even if doing so may cause harm to one side.
One of the most important things a manager can do is act ethically. This includes being
able to tell the difference between right and wrong and making decisions based on that
knowledge, even if doing the right thing would get him and his company in trouble. A manager's
job is to help employees and business partners understand different actions' potential benefits and
drawbacks. As a manager, I am responsible for making decisions based on my principles,
considering the impact on all parties involved, and setting a positive example for my
subordinates.
Adopting and enforcing this policy would be a responsible choice as it would help my
firm achieve its primary goal of increasing its earnings. It would be suitable for business in the
near term, but consumers will find out about the company's wrongdoing and go with a different
credit card issuer in the long run. The idea that good and evil are relative is something that we
learn from morality and ethics. Being confused is preferable to tricking someone into paying for
something they did not do. As processing center manager, I would not implement policy number
five. I believe imposing a late fee on consumers whose payments are received on or within one
day before the due date is unethical. In my opinion, customers should be able to provide
evidence of timely payments.
Not choosing Policy No. 5
I could lose my job if I choose not to implement Policy No. 5 since I will be against EFG
desire to implement Policy No. 5. As a manager, I must follow orders. However, aside from my
management responsibilities inside the company, I also have ethical and moral obligations to
6
society and the public. I cannot consent to implementing deceitful practices that financially harm
the public. In order to address this issue and prevent my firm and I from engaging in such
unethical acts, I would pursue these steps:
A significant breach of ethics in the workplace is misrepresentation. Managers are
morally obligated to notify the appropriate authorities when they become aware of
unethical behavior (Agudelo et al., 2019). This may be particularly strange if the
administrator's bosses carry out the extortion. However, this is the first stage in
approaching higher-up management, and I conclude that this conduct is immoral and
unethical.
The search for a director with a stellar reputation or partners who share my views
continues. Keep me safe by meticulously documenting that I feel uncomfortable working
on this project and that I have spoken with a supervisor who assures me that there are no
untrustworthy challenges. Please speak with an HR representative about it.
Please note my concerns with upper management before I respond. I need you to read
them so I can formulate a "no" response. Maintain an alert and courteous demeanor as
you inform upper management that you need a quick answer; just let them know you
want to evaluate their request thoughtfully. To the best of my ability, I will resist the urge
to give in to pressure and say "OK."
In the long term, this strategy would lead to a decline in consumer loyalty, and I would
do my utmost to demonstrate this. The corporation would not gain from any deception, either.
No regulations should be put into place that are morally and ethically questionable. Instead, we
should form a committee to brainstorm ideas that would assist us in keeping clients and
increasing our earnings.
7
I propose they form a group or department to brainstorm ways to entice consumers. It
would be very profitable to invest in advertising and human resources. In the future, it would be
fantastic if everything helped society. Customers are the most important people to keep informed
about policy changes. Therefore, it is only fair that we do so. After all, they are the ones who
stand to benefit most from these updates. I urge them to see that it is in their best interest to be
completely forthright with their clients and that concealing their rules would only hurt them.
Wrongful discharge action
The legal term "unfair release" is often used to describe a more general concept, "unjust
end disregarding open strategy" - a decision made by a judge that prohibits bosses in many states
from firing an employee who opposes or will pass on certain illegal or dishonest practices. Most
governments allow a free representative to carry out an open strategy-dependent unfair release
activity. Therefore, it is not permissible for a company to legally fire an employee only because
their representative declined to comply with a specific regulation, statute, or professional
standard (Cornelius, 2018). Furthermore, it is against the public interest to fire an agent
exercising a constitutionally protected right, such as seeking worker compensation payments for
a physically demanding job. Additionally, an employee has protections if a retaliatory release
results from his whistleblowing efforts or other leads reveal the company's wrongdoing.
Representatives may claim unfair release in almost half of the states based on an implied
or explicit promise by the company, constituting a unilateral agreement. The other party executes
the commitment made by the first party in a one-sided agreement. When a company engages in
unfair release practices, it usually has an explanation that promises representatives professional
stability, either openly or by verification (Garnett & Ashburn, 2024). This articulation is often
seen in approach proclamations or representative handbooks handed to new employees.
8
Customers and society expect me to uphold moral and ethical standards as a manager and
personally. I would refuse to compromise my morals and ethics by participating in fraudulent
actions; instead, I would think about getting dismissed. However, I am also responsible for
ensuring that others do the right thing morally and ethically. Ultimately, I will do everything I
can to influence upper management as well as lawmakers that crafting such a policy is unethical
and fraudulent and, more importantly, it is equally unethical to conceal any policy from the
critical stakeholders who rely on our reports when making decisions. My priority would be
protecting clients and the business from fraud, wrongdoing, and legal trouble.
Conclusion
To conclude, the proposed policy change by EFG Credit Finance, mainly Policy 5, has
not been disclosed to the public and presents several legal, ethical, and professional issues for
consideration. The actions taken by the company might be practically unlawful in proving the
Federal Trade Commission Act, Truth in Lending Act, Fair Credit Billing Act, and the Fair Debt
Collection Practices Act. From an ethical position, the kind of business EFG is conducting is
most appropriate in the utilitarian business model where their company profits are first
considered as opposed to the well-being of their customers. Thus, such an approach is reckless
and counterproductive in the long term; it undermines consumer trust and deteriorates the
company’s image. In light of this, failure to operate Policy 5 is the correct thing to do, and the
risks of losing the job should not concern the processing center manager. The available
protection in an at-will employment situation is somewhat restricted; however, it might entail
documentation of the experiences, reaching out to peers who could be facing similar scenarios,
and writing to the higher authorities of the company. Where the termination occurs due to
refusing to affect the policy, legal justifications for an action for wrongful discharge could take
9
two legal avenues: the violation of public policy or an implied contract. Finally, more attention
should be paid to the violations of ethics and laws rather than easy earnings for a company; it is
crucial for long-term success and to remain ethical in the financial services industry.
10
References
Agudelo, M. A. L., Jóhannsdóttir, L., & Davídsdóttir, B. (2019). A Literature Review of the
History and Evolution of Corporate Social Responsibility. International Journal of
Corporate Social Responsibility, 4(1), 1–23. Springeropen.
https://doi.org/10.1186/s40991-018-0039-y
Cornelius, K. B. (2018). Standard form contracts and a smart contract future. Internet Policy
Review, 7(2). https://doi.org/10.14763/2018.2.790
Duignan, B., & West, H. R. (2024). Utilitarianism philosophy. In Encyclopædia Britannica.
https://www.britannica.com/topic/utilitarianism-philosophy
Federal Trade Commission. (2018, August 12). Fair Debt Collection Practices Act. Federal
Trade Commission. https://www.ftc.gov/legal-library/browse/rules/fair-debt-collection-
practices-act-text
Garnett, A. G., & Ashburn, N. (2024). What Is Regulation Z & the Truth in Lending Act
(TILA)? | Britannica Money. In Encyclopædia Britannica.
https://www.britannica.com/money/tila-and-regulation-z-explained
Karerat, R. (2023). Fordham Law Review Fordham Law Review Close Enough to Stand?:
Reconsidering the Fair Debt Collection Close Enough to Stand?: Reconsidering the Fair
Debt Collection Practices Act’s Relationship with the Right to Privacy Practices Act’s
Relationship with the Right to Privacy.
https://ir.lawnet.fordham.edu/cgi/viewcontent.cgi?article=6016&context=flr
Quiambao, J. E. A. (2022). Thinking ethically: The utilitarianism approach in moral decision
making. International Journal of Multidisciplinary Research and Growth Evaluation,
03(03), 602–604. https://doi.org/10.54660/anfo.2022.3.3.30
11
Savulescu, J., Persson, I., & Wilkinson, D. (2020). Utilitarianism and the pandemic. Bioethics,
34(6), 620–632. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7276855/
