CFPB Takes Action Against ACE Cash Express for Pressing Payday Borrowers Towards Pattern of Debt
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 customer Financial Protection Bureau (CFPB) took enforcement action against ACE money Express, among the largest payday loan providers in america, for pushing payday borrowers in to a period of financial obligation. The CFPB unearthed that ACE utilized debt that payday loans online bad credit Hawaii is illegal techniques – including harassment and false threats of legal actions or unlawful prosecution – to pressure overdue borrowers into taking right out extra loans they are able to maybe perhaps maybe not manage. ACE will give you $5 million in refunds and spend a $5 million penalty of these violations.
“ACE used threats that are false intimidation, and harassing phone 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 consumers that has options that are few fight.