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410steve

Hello, I'm in California.

I borrowed $10,000 from CashCall at 39%. I haven't made 3 payments. I now owe over $11,000. I want to reduce the interest rate, however they say they don't do that. At 39%, it'd take forever to pay them off. Like a perpetual tithe.

I heard that if we go to court and they receive a judgment by the court for me to pay them, will it be at 39% as well or is there a maximum rate the court will allow?

Thanks,

Steve

Posted: Mon Jun 25, 2007 2:41 pm Subject:

Judgment is not going to look good on your credit. But if you really have no other option to settle this case outside the court, the judge will fix up a payment plan with CashCall. It should not be more than 25% after deducting your disposable income. However, each state has its own laws on garnishment. Check with the attorney general for the specific laws in your state.

Posted: Mon Jun 25, 2007 2:44 pm Subject:

Is CashCall a licensed business in your state, or are they just using a scare tactic to get money from you?

You must also check the contract copy to make sure that they are adding legal charges allowed in your state.

Posted: Mon Jun 25, 2007 5:45 pm Subject:

When a contract is reduced to judgment, it can no longer earn interest as outlined in the contract. Basically, when a creditor sues you, all interst/delinquency charges stops. From then on, they can only add court costs/fees and "Judgment interest".

Judgment interest is always set at the state's statutory rate. In Illinois judgments can only earn 9% interest.

Keep in mind, judgments will show on your credit report and will not look good to future lenders when you want another loan. Also, judgments stay on for 10 years not 7.

But, if you're just worried about the interest, then yes a judgment will reduce your interest rate from 39% to whatever your state's statutory rate is.

410steve · Posted: Tue Jun 26, 2007 12:01 am Subject:

Thanks for the help.

I'm going to talk with Cashcall tomorrow. My goal is to pay off the debt. I did borrow and spend the money.

Hopefully, I can refinance the loan. however, with the horror my credit has become, that may prove to be next to impossible.

If my mom doesn't lend me the money, know anywhere I can go for help?

Posted: Tue Jun 26, 2007 6:52 am Subject:

Yeah, cashcall sucks. They are backed by a bank, so they are 100% legal. You are lucky you are only paying 39%, usually they charge closer to 99%.

The one problem is that places like cash call will usually threaten suit right away, but then wait quite a while before actually suing. They know they lose their interest if they get a judgement, so they usually let it go for a while so it builds up interest. Then they hit you.

Have you checked out prosper.com yet? It's a place where normal people will bid on lending you money. You do have to have a minimum credit score to even be able to post, but it may be worth a shot if your mom doesn't come through.

Guest · Posted: Tue Jun 26, 2007 9:24 pm Subject:

Thanks for the link! I'm going to check that site out!

So, I talked to CashCall today. I asked about reducing my rate, they said no. I asked about the letter I received from their attorney and he said that if I made a payment and became current they wouldn't take me to court. I then asked him, "wouldn't the california statute limitations on interest that can be charged on judgements be less than 39%?" He got upset and told me that if they sued me, they'd go after a judgement for the entire finance charge over 10 years, plus the $9,925 they lent me, totalling $39,000. So if I don't want that, I should make my payments and feel happy that there's no prepayment penalty.

Was that man correct? That sounds stupid that they'd be awarded a judgement for interest that hasn't accrued yet! They don't deserve future earnings, how could they prove that in court, ESPECIALLY since there isn't a prepayment penalty. I hate CashCall.

Posted: Wed Jun 27, 2007 12:34 am Subject:

I do not believe CashCall would be awarded the balance of the interest over 10 years, I would imagine the atty was trying to scare you. CashCall would in all likelihood, be awarded court costs and atty fees though...and this would push the cost up by possibly a couple of thousand dollars.

Posted: Wed Jun 27, 2007 6:42 am Subject:

They wouldn't, and couldn't do that. They are just trying to scare you . . . . I've dealt with a very similar company, and was actually sued by them after 8 months. They only sued for the current balance. No judge will give them interest that hasn't accrued yet.

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