Education News Simulator Your Money Advisors Academy News Personal Finance News CFPB Sues ACE Cash Express with allegations of concealment of free Repayment Plans Also, the agency says they believe that the company that lends money to payday lenders unlawfully erased customer funds. By Ben Luthi Publication date: July 14, 2022. The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit Tuesday, bringing suit against ACE Cash Express. The federal agency claims that the payday lenders has generated about $240 million, or more, in reborrowing fees from borrowers who could have been eligible for free plan of repayment. It also lied about the frequency it attempted to deduct funds from the accounts of loanees’ banks. Essential Takeaways The CFPB has filed suit against payday lender ACE Cash Express for charging infractions and making unlawful debits of borrowers’ accounts. The Federal agency claims that it is the loan provider’s repeat offender, citing a 2014 . enforcement measure that resulted in 10 million dollars in penalties and borrower refunds. The CFPB seeks financial relief for consumers including injunctive relief and civil sanctions, as well as disgorgement or compensation for unjust gains. The CFPB’s Lawsuit Against ACE Express Cash Express ACE Cash Express is a cash advance lender, offering title loans including check cashing bills pay and a variety various other banking services.1 However, its treatment of payday loans is what brought to a lawsuit brought by the CFPB. The federal agency alleges that the lender has broken federal laws. Particularly: Covering free repayment plans in 10 states clients are entitled to one repayment plan for free each year. They can pay an equal amount of installments instead being able to pay in one lump sum, with no additional fees or interest. Instead of informing consumers about this option, ACE Cash Express told them they only had two options: the short grace period or a refinance with a fee. The CFPB reports that the company has produced at most $240 million in fees from these customers since 2014. Paying for money illegally: In many States, payday loan contracts state that the lender has the ability to withdraw repayment up to three times. However, the CFPB alleges the following: ACE Cash Express has made an unauthorized fourth withdrawal at about 3,000 in the last year and that resulted in $1.3 million that was debited fraudulently. 2 The CFPB has also noted an enforcement action that it took towards ACE Cash Express in 2014, which ordered the payday lender not to force clients into perpetual cycles of debt along with other illegal debt collection practices.3 The lender stated in a press release that the lawsuit was without merit, saying that incorrect withdrawals only affected 0.028 percent of borrowers. They also claimed that more than 140,000 of borrowers have used the payment plan option using this as proof that customers were aware of the option.4 Sponsored Reliable, Simple, Innovative CFD Trading Platform Are you looking for a reliable CFD trader? 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 most popular markets in the world and discover endless trading opportunities. Choose from more than 2000 financial instruments and receive live, instant quotes. Learn more about trading through a trusted CFD supplier and get with a demo account for free. 86% of retail CFD accounts lose money. 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More Student Debt Definition Student debt refers to loans that are used to pay for college tuition that are due after the student has graduated or has left school. More Regulation B (Reg B) in the Equal Credit Opportunity Act (ECOA) Regulation B describes the regulations that lenders must follow when processing credit information. More Consumer Financial Protection Act The Consumer Financial Protection Act of 2010 created the Consumer Financial Protection Bureau (CFPB). More 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 a person due to any reason unrelated to the applicant’s capacity to pay back. more An Overview of the Exchange and its collapse FTX It was once the 3rd-largest central cryptocurrency exchange and the third-largest centralized cryptocurrency exchange, is currently located in U.S. bankruptcy. Its CEO is facing criminal as well as civil charges . The case will go to the trial in October. more

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