ACE Cash Express to pay $10 million to settle debt-collection probe
Irving, Texas -- Irving-based ACE Cash Express, one of the nations largest payday lenders, has agreed to refund borrowers $5 million and pay the U.S. government another $5 million in fines for using illegal collection tactics such as threatening criminal action against customers who fell behind on payments and informing their employers of the debt.
ACE used false threats, intimidation and harassing calls to bully payday borrowers into a cycle of debt, said Richard Cordray, director of the Consumer Financial Protection Bureau, which negotiated the settlement. This culture of coercion drained millions of dollars from cash-strapped consumers who had few options to fight back.
In addition, ACE on Thursday said it had disciplined employees prior to March 2012 over the way collections were handled, and others involved were no longer at the company. The CFPB began examining the practices three months later.
The federal watchdog agency, working with the Texas Office of Consumer Credit Commissioner, said it found that ACE used the deceptive and abusive practices to collect consumer debts directly and through collection agencies.
More at http://www.star-telegram.com/2014/07/10/5962002/ace-cash-express-paying-10-million.html .
[font color=green]Applause for Cordray and the CFPB.[/font]