CFPB Takes Action Against ACE Money Express for Pressing Payday Borrowers Towards Pattern of Financial Obligation
Today, the buyer Financial Protection Bureau (CFPB) took enforcement action against ACE money Express, among the payday lenders that are largest in america, for pressing payday borrowers as a period of financial obligation. The CFPB unearthed that ACE utilized unlawful financial obligation collection techniques – including harassment and false threats of legal actions or unlawful prosecution – to pressure overdue borrowers into taking out fully extra loans they are able to perhaps maybe not pay for. ACE will offer $5 million in refunds and spend a $5 million penalty of these violations.
“ACE used threats that are false intimidation, and harassing telephone telephone calls to bully payday borrowers right into a period of financial obligation, ” said CFPB Director Richard Cordray. “This tradition of coercion drained millions of bucks from cash-strapped customers who’d few choices to react. Read more