Q:

Are ACE Cash Express cash advance loans an example of predatory lending?

A:

Quick Answer

Because the interest rates and terms of its cash advance loans are so onerous, some have described Ace Cash Express as one of a group of "modern-day loan sharks," as U.S. News & World Report points out. The Consumer Federation of America considers such lenders predatory.

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Full Answer

The payday loans made by Texas-based Ace Cash Lending don't actually qualify to be called "payday" loans under the Military Lending Act, which defines payday loans or cash advances as lasting a maximum of three months, as the Huffington Post explains. As of 2013, Ace Cash Lending offered a five-month loan that charged an interest rate of 585 percent.

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