CFPB Techniques Against Cash Advance Industry, Orders ACE Cash Express To Cover $10 Million

CFPB Techniques Against Cash Advance Industry, Orders ACE Cash Express To Cover $10 Million

The CFPB reached a settlement Thursday with one of the nation’s largest payday lenders for $10 million over its illegal debt collection tactics in another sign that the payday loan industry is increasingly under siege.

The financial institution, ACE money Express, “used false threats, intimidation, and harassing phone calls to bully payday borrowers 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.”

For instance, the CFPB claims customers faced the danger of additional charges, being reported to credit scoring agencies and unlawful prosecution if they did not make re payments. Some enthusiasts over and over called consumers, their workplaces as well as their loved ones, disclosing information regarding their loans. Read more