ACE vehemently disagrees with the CFPB’s allegations of deception, injustice and abuse. Over 140,000 ACE customers have taken advantage of ACE’s payment plan option since 2013, which clearly indicates that borrowers were aware of this option.
The CFPB’s claim regarding the alleged improper withdrawals relates to only approximately 0.028% of ACE’s loan transactions during the relevant period and the CFPB misinterpreted the relevant wording of the loan agreement. Moreover, despite the absence of harm to the consumer, ACE reimbursed more than $670,000 to loan customers that they will never be required to repay.
DALLAS, July 12, 2022 /PRNewswire/ — Populus Financial Group, which operates ACE Cash Express (ACE), today responds to a baseless lawsuit containing a series of false claims filed by the Consumer Financial Protection Bureau (CFPB).
ACE, a provider of financial products and services to millions of consumers, has spent more than 50 years serving its customers fairly and transparently, while creating a culture of service and compliance that aligns with the goals of its regulators and its many constituents. In doing so, ACE has built a strong relationship with its customers, who are extremely satisfied with ACE’s products and services. In June this year, ACE received over 9,600 Google reviews with an average rating of 4.88 out of 5 stars, and ACE’s Net Promoter Score (NPS), a measure of customer loyalty and satisfaction. , is currently at 65.3, which is significantly above average. NPS for the financial services industry.
Therefore, ACE is disappointed that the CFPB has decided to pursue a baseless lawsuit regarding a long-disclosed Voluntary Payment Plan process that benefits ACE customers, and the misinterpretation by the CFPB a provision of the loan agreement that had an impact on a small number of borrowers. Unfortunately, the CFPB has left ACE no choice but to litigate and defend against these unwarranted claims.
In states that do not require a payment plan, ACE voluntarily offers a no-fee payment plan option on its payday loan products as an alternative to refinancing and as a benefit for a customer who has expressed difficulty making payments. .
In 2013, ACE created a process to consistently and uniformly offer its payment plan and added language to its loan agreements to further inform borrowers of the availability of the payment plan option. ACE believed that this process met the expectations of the CFPB at that time. ACE revised its process again in 2020. This revised process has been in place for over two years, and ACE again believes that this process has met the CFPB’s new expectations. But instead of engaging with ACE and providing oversight advice, the CFPB is now trying to penalize ACE for a process it used under a voluntary payment plan that is not required by the law.
ACE vehemently disagrees with the CFPB’s allegations of deception, injustice and abuse. More than 140,000 ACE customers have taken advantage of the payment plan option since the changes were implemented in 2013, but the CFPB wrongly alleges that ACE hid the payment plan option from borrowers and pushed them to refinance. Evidence shows that customers were aware of the voluntary payment plan option due to disclosures in their loan agreements and language used on ACE’s website and other communications.
Separately, the CFPB accused ACE of unfairly withdrawing money from customers without authorization. This allegation relates to only approximately 0.028% of ACE’s loan transactions during the relevant period, and despite its disagreement with the CFPB’s interpretation of certain provisions of the loan agreement and the absence of prejudice to the consumer, ACE immediately revised the wording, checked other documents and self-declared additional similar language. In addition, over two years ago, ACE voluntarily reimbursed over $670,000 principal, interest and charges to affected consumers, most of which corresponded to the principal, and voluntarily canceled the debt. In other words, ACE has given more than half a million dollars to lending customers that they will never be required to repay.
The CFPB also claimed that ACE is a repeat offender. It’s not true. Until the CFPB filed this lawsuit, it never took any enforcement action based on ACE’s payment plan. The second allegation regarding the CFPB’s misinterpretation of certain provisions of the loan agreement has also never been in question – until now.
In the weeks leading up to the lawsuit, ACE expressed a strong desire to reach a satisfactory resolution with the CFPB by offering to make certain changes that would have benefited consumers, even though those changes are not required by law. and are outside the scope of these claims. ACE has also repeatedly requested an in-person meeting between CFPB senior management and ACE executives to resolve CFPB misunderstandings.
ACE’s consumer-friendly and hard-hitting legislative change proposals were unfortunately met with outrageous and unprecedented demands, and ACE’s requests for a face-to-face meeting were denied. These discussions and the CFPB’s refusal to meet with ACE executives made it clear to ACE that the CFPB had no real intention of settling, leaving the only path to fairness through the courts. We look forward to sharing the facts with an unbiased judge.
About Populus Financial Group and ACE Cash Express
Populus Financial Group™ provides financial services through its family of brands, including ACE Cash Express®, ACE Elite® Visa® Prepaid Debit Card, Flare Account® and Porte™. Populus Financial Group offers a wide range of financial products and services, including short-term consumer loans, card services, check cashing, money transfers, bill payments and money orders. Visit PopulusFinancial.com for more information.
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SOURCE Populus Financial Group Inc.