Education News Simulator Your Money Advisors Academy News Personal Finance News CFPB Sues ACE Cash Express with allegations of concealment of free Repayment Plans The agency has also stated it is believed that the lender illegally stopped customers from withdrawing their funds. By Ben Luthi Publication date: July 14, 2022. The Consumer Financial Protection Bureau (CFPB) issued a suit on Tuesday on behalf of ACE Cash Express. The federal agency claims the payday lender has generated the equivalent of $240 million charges for reborrowing from borrowers who were eligible for repayment plans . It also admitted to lying about the number of times it attempted to take deposits from accounts in the name of the borrower. Principal Takeaways The CFPB has filed suit against payday lender ACE Cash Express for charging unconstitutional fees and committing illegal debits from borrower’s bank accounts. The agency of the federal government says they are a repeat offenders, citing an enforcer action in 2014 that led to $ 10 million in fines and reimbursements for the borrower. The CFPB is seeking financial relief for consumers including injunctive relief and civil penalties, and disgorgement or compensation for unfair gains. The CFPB’s Lawsuit Against ACE Cash Express ACE Cash Express is a payday lender which offers title loans in addition to check cashing, bill pay , and a range and other services.1 The way they handle payday loans is what brought to a lawsuit brought by the CFPB. The agency claims the lender is in violation of federal laws. More specifically: The repayment plan is hidden from view In 10 states, consumers are entitled to one repayment plan for free each year. It lets them make four equal installments rather than one lump sum. The plan comes with no interest or fees. Instead of making the borrowers aware of this plan, ACE Cash Express told they had only two options: either a brief grace period, or a fee-based refinance. The CFPB states that the lender has collected at least $240million in fees from these customers since 2014. Withdrawing money illegally: In many States, payday loan contracts state that the lender can attempt to withdraw the repayment up to three times. However, the CFPB states the following: ACE Cash Express has made an illegal fourth withdrawal of at more than 3,000 times between 2016 and now the result was $1.3 million in money which was taken illegally. 2 The CFPB notifies of an enforcement action it took against ACE Cash Express in 2014, which ordered the payday lender to refrain from dragging borrowers into cycles of debt and other illegal debt collection practices.3 The lender said in a press statement that the lawsuit is absurd, claiming that the improper withdrawals only affected 0.028 percent of borrowers. They also claimed that over 140,000 borrowers have utilized the option of a payment plan, arguing this as evidence that consumers are aware of the option.4 Sponsored Reliable, Simple, Innovative CFD Trading Platform Are you in search of a reliable CFD trading service? As Germany’s No. 1 CFD provider (Investment Trends 2022) Plus500 is a CFD licensed provider that is protected by SSL. Customers can exchange CFDs on the world’s most well-known markets as well as explore endless trading options. Choose from more than the 2,000 financial instruments available and get immediate, no-cost quotes. Learn more about trading with a trusted CFD provider . Get our demo demo for free now. 86 percent of retail CFD accounts have losses. 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More Student Debt Definition Student debt refers to loans to cover college tuition , which are due when the student finishes or leaves school. More Regulation B (Reg B) in the Equal Credit Opportunity Act (ECOA) Regulation B outlines the rules that lenders have to follow in obtaining and processing credit information. more Consumer Financial Protection Act The Consumer Financial Protection Act of 2010 established the Consumer Financial Protection Bureau (CFPB). more What is The Equal Credit Opportunity Act (ECOA)? Its purpose The Equal Credit Opportunity Act (ECOA) is a federal civil rights law which prohibits lenders to deny credit to applicants in connection with any aspect that isn’t directly related with the applicant’s capability to repay. More FTX: An Overview the Exchange as well as its Colapse FTX was, at one time, the third-largest central cryptocurrency exchange it is now within U.S. bankruptcy. Its CEO is facing criminal as well as civil charges , and will go to the trial in October. more

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