Ace Cash Express Settles Debt Collection Claims
IRVING, Texas (AP) – Ace Cash Express Inc. has agreed to pay $10 million in a settlement with federal regulators who accused the payday lender of illegally harassing borrowers to collect debts and get them to take out additional loans.
The Consumer Financial Protection Bureau announced the agreement with Ace, one of the biggest payday lenders in the U.S. The company will pay a $5 million fine and return $5 million to affected customers.
The CFPB said Thursday it was its first action against a payday lender for forcing consumers into a cycle of debt.
Ace, based in Irving, Texas, didn’t admit wrongdoing in the settlement. The company said in a statement it has cut ties with the outside collection agency which the regulators had expressed concerns about.
(© Copyright 2014 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)
- When It Comes To Your Fantasy Team, Always Be Looking For Someone Better
- Keidel: Money, Mayhem And Madness
- Dwight Howard’s Physical Play Irks Mavs’ Carlisle
- Short But Powerful Storm Rips Through Parts Of Arlington
- Winds, Lightning, Flash Floods, Hail
PHOTOS: Your Pet Pictures