These payday loan operations are no different than the loan sharks of old short of using baseball bats to break elbows and kneecaps. Rather than slapping them on the wrist they should be shutting them down and throwing the operators in jail.
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.
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