Education News Simulator Your Money Advisors Academy News Personal Finance News CFPB Sues ACE Cash Express accusing them of concealing free Repayment Plans Also, the agency says that the payday lender illegally debited the customer's funds. By Ben Luthi Publication date: July 14, 2022. The Consumer Financial Protection Bureau (CFPB) announced a lawsuit on Tuesday in the case against ACE Cash Express. The federal agency claims that the payday lender generated at least $240 million in the form of reborrowing charges from those who had the right to free loans and also deceived about the number of times it would try to deduct deposits from accounts in the name of the borrower. Important Takeaways The CFPB is suing payday lender ACE Cash Express for charging charges that are illegal and illegal debits on borrowers' accounts. The federal agency states that the lender is a repeated offenders, citing an 2014 enforcement action that resulted in an amount of $10 million in penalties, as well as repaying the borrower. The CFPB seeks financial relief for consumers that are in need of injunctive or injunctive relief. They also want fines, disgorgement, or compensation for unjust gains. The CFPB's Lawsuit Against ACE Cash Express ACE Cash Express is a payday loan provider that also offers title loans including check cashing bill pay and a wide range different financial services.1 However, its treatment of payday loans is what brought on a lawsuit filed by the CFPB. The agency claims that the lender is in violation of federal laws. More specifically: Uncovering free repayment programs In 10 states, those who borrow have the right to the option of a free repayment plan each year. It allows them to take four equal installments instead of one lump sum with the addition of no fees or charges. Instead of alerting borrowers of this plan, ACE Cash Express told it that the only options for them were an indefinite grace period or a refinance based on fees. The CFPB says the lender has made at the least $240 million in fees through these borrowers over the course of 2014. Making illegal withdrawals: In several states, payday loan contracts state that the lender has the right at withdrawing repayment up to three times. However, the CFPB asserts that ACE Cash Express has made an unauthorized fourth withdrawal at least 3,000 times since the year 2016 the result was $1.3 million in cash being debited without authorization. 2 The CFPB also cites an enforcement action it initiated against ACE Cash Express in 2014 and required the payday lender to not pressure consumers into cycle after cycle of debt, among other illegal debt collection practices.3 The lender explained in a press release that the lawsuit was absurd, claiming that the illegal withdrawals impacted only 0.028 percent of its borrowers. that more than 140,000 of borrowers have utilized the option of a payment plan, arguing this as evidence that consumers know about the option.4 Sponsored Reliable, Simple, Innovative CFD Trading Platform Are you looking for a reliable CFD trading platform? As Germany's No. 1 CFD provider (Investment trends 2022), Plus500 is a licensed CFD provider whose platform is protected by SSL. 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It is due when the student finishes or leaves school. more Regulation B (Reg B) in the Equal Credit Opportunity Act (ECOA) Regulation B provides the rules that lenders need to adhere to when they process and obtain credit information. More Consumer Financial Protection Act The Consumer Financial Protection Act of 2010 established the Consumer Financial Protection Bureau (CFPB). more What Is what is the Equal Credit Opportunity Act (ECOA)? Intention The Equal Credit Opportunity Act (ECOA) is a federal civil rights legislation that prohibits lenders to deny credit to applicants based on any factor unrelated to the person's ability to repay. more FTX: An Overview of the Exchange and its Decline FTX which was once the third largest cryptocurrency exchange in the world it is now found in U.S. bankruptcy. Its founder is facing criminal and civil charges and goes to the trial in October. More

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