CFPB Takes Action Against ACE Money Express for Pressing Payday Borrowers Towards Cycle of Financial Obligation
ACE to pay for $10 Million for Using 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 money Express, among the biggest payday loan providers in the usa, for pushing payday borrowers into a period of financial obligation. The CFPB unearthed that ACE used debt that is illegal techniques – including harassment and false threats of lawsuits or unlawful prosecution – to pressure overdue borrowers into taking out fully extra loans they are able to maybe not manage. 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 phone phone phone calls to bully payday borrowers right into a period of financial obligation,” said CFPB Director Richard Cordray. Lire la suite