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ACE Cash Express to pay $10 million over 'cycle of debt' allegations
ACE Cash Express to pay $10 million over 'cycle of debt' allegations

ACE Cash Express, a leading payday lender, has agreed to pay $10 million to settle federal allegations it used false threats of lawsuits and other illegal tactics to pressure customers with overdue loans to borrow more to pay them off. The Irving, Texas, firm, which has 1,500 locations in California and 35 other states, will pay a $5-million fine and $5 million in refunds to tens of thousands of borrowers, the Consumer Financial Protection Bureau, which oversees payday lenders, said Thursday. “ACE used false threats, intimidation and harassing calls to bully payday borrowers into a cycle of debt,” said bureau Director Richard Cordray. “This culture of coercion drained...

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