Advanced Search

Volume 25 - Number 15

July 21, 2014

Bureau Fines Big Payday Lender $10 Million for ‘Abusive’ Practices

The CFPB recently ordered ACE Cash Express of Irving, TX, one of the largest payday lenders in the United States, to pay a $10 million fine for allegedly using illegal debt-collection tactics – including harassment and false threats of lawsuits or criminal prosecution – to pressure consumers into debt traps they couldn’t afford and couldn’t get out of. The bureau said it found that ACE used these illegal debt-collection tactics to create a false sense of urgency to lure overdue borrowers into payday debt traps. “ACE would encourage overdue borrowers to temporarily pay off their loans and then quickly re- borrow from ACE,” the CFPB said. Even after consumers explained to ACE that they could not afford to repay the loan, the ...

Subscribers to Inside the CFPB have full access to all its stories and data online. Visitors may become subscribers for full access or may purchase individual articles and data.

Subscriber Log In

If you are a current subscriber or already purchased this article, please login below.

Forgot your password?

Already subscribe but haven't registered for all the benefits of the website?

Subscribe

This biweekly keeps mortgage executives on top of the onslaught of new legal and regulatory issues the industry has been seeing.

 

Pay-Per-View

You can purchase this article for $55.00 without subscribing and always have access to it on insidemortgagefinance.com.

Pay Per View

Please contact Customer Service if you need assistance: 1-800-570-5744

Poll

After the November elections, how long will it take for a new Congress and White House to pass GSE reform legislation?

I’m confident a bill will be passed the first year.
2 to 3 years. GSE reform is complicated.
Sadly it won’t happen in a Clinton or Trump first term.
Not in my lifetime.

vote to see results
Housing Pulse