CFPB Orders Leading Payday Lender to Pay $10 Million

Thursday, July 10, 2014

The CFPB has reached a $10 million settlement with ACE Cash Express, one of the nation’s largest payday lenders, for its illegal debt collection tactics. The CFPB says ACE threatened consumers with extra fees, being reported to credit reporting agencies and criminal prosecution if they didn’t make payments. Some collectors repeatedly called consumers, their offices and even their relatives, disclosing information about their loans. Of the $10 million settlement, $5 million will be paid to consumers in the form of refunds and $5 million will be paid as a penalty to the CFPB. ACE Cash Express is also ordered to end illegal debt collection threats and harassment and to stop pressuring borrowers into taking out repeated loans.