CFPB Takes Action Against ACE Money Express for Pressing Payday Borrowers Towards Pattern of Financial Obligation

CFPB Takes Action Against ACE Money Express for Pressing Payday Borrowers Towards Pattern of Financial Obligation

ACE to pay for $10 Million for making use of prohibited business collection agencies Tactics to Pressure Consumers towards Debt Traps

WASHINGTON, D.C. — Today, the buyer Financial Protection Bureau (CFPB) took enforcement action against ACE Cash Express, among the payday lenders that are largest in the us, for pressing payday borrowers right into a period of financial obligation. The CFPB discovered that ACE utilized debt that is illegal techniques – including harassment and false threats of legal actions or unlawful prosecution – to pressure overdue borrowers into taking out fully extra loans they might perhaps maybe maybe not pay for. ACE provides $5 million in refunds and spend a $5 million penalty of these violations.

“ACE used false threats, intimidation, and harassing phone telephone calls to bully payday borrowers right into a period of financial obligation,” said CFPB Director Richard Cordray. Continue reading “CFPB Takes Action Against ACE Money Express for Pressing Payday Borrowers Towards Pattern of Financial Obligation”