Today, the buyer Financial Protection Bureau (CFPB) took enforcement action against ACE money Express, among the biggest payday loan providers in the usa, for pushing payday borrowers in to a period of financial obligation. The CFPB discovered that ACE utilized debt that is illegal techniques – including harassment and false threats of lawsuits or unlawful prosecution – to pressure overdue borrowers into taking out fully additional loans they might perhaps not manage. ACE will offer $5 million in refunds and spend a $5 million penalty of these violations.
“ACE used false threats, intimidation, and harassing telephone phone phone calls to bully payday borrowers right into a period of financial obligation, ” said CFPB Director Richard Cordray. “This tradition of coercion drained millions of dollars from cash-strapped consumers that has options that are few fight. [Read more…] about CFPB Takes Action Against ACE Money Express for Pressing Payday Borrowers Towards Pattern of Financial Obligation