“Abusive” Standard Invoked in CFPB Consent Order Against Payday Lender
July 21, 2014
The Consumer Financial Protection Bureau entered into a consent order against ACE Cash Express Inc., one of the largest payday lenders in the country, for its debt collections practices. ACE’s in-house and outside collection agents were found to have created a false sense of urgency in order to induce delinquent borrowers to take new loans and pay new fees, thus pushing them into a cycle of debt. See CBA’s Regulatory Compliance Bulletin for more information.