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Cash Call Lawsuit: Suit to stop illegal lending practices by Cash Call

Date: Mon, 10/01/2007 - 22:22

Submitted by kscornell
on Mon, 10/01/2007 - 22:22

Posts: 4407 Credits: [Donate]

Total Replies: 289


I had a great conversation with Attorney Arthur Levy, who is working on the cashcall lawsuit in California. I also invited him to visit the forums, which I certainly hope he does and welcome him.
Here is what I can say on the lawsuit in a nutshell from Arthur: it is being filed in Los Angeles County and concerns CC's lending practices, specifically interest rates, fees and CC's practice of debiting on days that weren't agreed on by the consumer. Also they are looking at CC's charging bounced check fees that are higher than California state law allows. And more importantly, they are working to see that Cashcall doesn't engage in harassing activities.
Arthur agreed to let me give his contact information, but wants it in a PM to individuals, due to the volume of calls he could get.
He said that he would be willing to help if someone is facing an extreme situation with CC right now.
I told him that I am ready to sign on in the battle and know that many other members of the community would too!


Go to Strudevant Law firm and look up their cases. They filed a class action in October08 against CashCall and it is on-going.


lrhall41

Submitted by on Thu, 05/28/2009 - 10:54

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im dealing with cash call now, i would like to know if they have legal right to practice loans in pennsylvania.. they are way to annoying even though my payments are always made.. their interest rate is high and scary thing is it can change anytime... help..


lrhall41

Submitted by on Fri, 06/05/2009 - 12:45

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I just want to put my ' 2 cents' here.........I'm from PA, as well. I had a loan with CC about 3 years ago. My loan was ALSO 99%. I was just falling on some rough times. FINALLY..............I just couldn't make payments anymore. They called and called...references, too!!! REALLY embarresing!! Anyway.......CC 'sold' my loan to a CA ( they don't tell me that). I found out through a letter sent to me. I just want to let people know,...if you DON'T have to deal with them, then don't. GOD...they ARE scary to work with. I'm not sure if CC DOES have a LEGAL right to practice in PA. They threatened time after time to sue me...they never did. I really hope that someone can stop them!!


lrhall41

Submitted by sdchargers_63 on Fri, 06/05/2009 - 19:41

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To poster above,

I am sorry you have wasted thousands of dollars towards this company. On the other hand, Cash Call is an installment loan that charges %99.25 interest rates harbored from their licensing homestate to ID, CA, UT, and NM. When you received the loan I am guessing you never paid close detail to the contract, or you were in desperate need of money quicly like the rest of us. This is what suckers most of their consumers, however I feel it is still our responsibilty read and ask questions before making a transaction. I know I am guilty of it too :oops: If I would have read many of my loan contracts I would have saved hundreds :?

Please be carefull in dealing with this company for they are Legal to lend in almost every state and they can take defaulted consumers to civil claims court. Just being truthful about outcome possibilities in the future.

Now to avoid this you can try calling them and speak with a manager. Offer them a payoff settlement and advise you had a good payment history and you fell on hard times. You have paid "x" amount of dollars towards the loan and you was wondering if you can get a reduction in the remaing balance. CC have offered previous members in the past. I think it took six months of default untill they finally came around.

Another option is taking the CA gamble. You can wait for awhile to see if they will sell your debt to a CA without suing like sdchargers stated above. You probably have a better chance at settling with the CA and have better communication. Best of luck to you!!


lrhall41

Submitted by Cool_Abyss on Sat, 06/20/2009 - 07:08

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I took out a loan in 2004 for $2500 and lost my job a year later. I paid for the loan for a year @ $235 a month and I still owe them $2600. Is there anything that is being done in California for this problem. I just received a letter from an attorney saying that they were going to sue me for the amount.


lrhall41

Submitted by on Mon, 06/22/2009 - 11:16

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Does anyone know if anything ever happened. I read the forum too late...I would really like to join in if possible. Everything you have listed happened to me too.


lrhall41

Submitted by on Thu, 06/25/2009 - 10:00

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I don't mean to sound like a doubting Thomas here, but I'm pretty sure we're not going to see Cashcall go down anytime soon. I knew when I took the loan of $5000 that it wasn't a good idea, but I was desperate and needed the cash. I'm currently unemployed and would love not to have to shell out $265 each month to this company. If there is a way to settle with CC I'm open to ideas.


lrhall41

Submitted by on Fri, 07/03/2009 - 15:35

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i live in pa, who can i contact for info relating to cash calls outrageous interest rate.. what would happen if i default n im taken to court?


lrhall41

Submitted by on Tue, 07/14/2009 - 10:52

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I live in Twinsburg,Ohio and I had gotten a loan from Cash Call
for the amount 1500 and my loan still has not gotten down they have added so much interest and now I am not working and so they are trying to sue me now I would like to join in on the class action lawsuit I can be reached at 330-405-4975 and my
name is Shirley Rogers


lrhall41

Submitted by on Thu, 07/23/2009 - 20:49

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I have a $5,000 Cash Call loan that I have been paying since 2005 and guess what....my balance is still $5,000. My payment is $230 per month and my loan will not be paid off until 2015. I admit that I could have gone to a legitimate lending institution to get a loan but I needed the money right away due to a medical emergency. I will not be able to pay the account off in full any time soon. How can Cash Call interest rates be legal?


lrhall41

Submitted by on Wed, 08/05/2009 - 08:04

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I live in southern California and need the name of a lawyer that can help me with a lawsuit against Cash Call. Can anyone help please?


lrhall41

Submitted by on Wed, 08/19/2009 - 18:48

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Had a $2000 loan 2 years ago and was charged 99% interest. The phone calls and rudeness were insane. We made payments but the balance never went down. We finally had to get a loan from someplace else otherwise we would be paying them forever. Glad to see there going to get what they deserve.


lrhall41

Submitted by on Tue, 08/25/2009 - 22:44

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Cash Call loan company agrees to pay $1 million in penalties
By PE News on August 25, 2009 9:20 AM | Comments (0)
Anaheim-based fast-money lender CashCall Inc. has agreed to pay the state $1 million in civil penalties and legal expenses to settle allegations that it ran deceptive ads and used loan shark tactics against its customers.

The state alleged that the company, which has used former child star Gary Coleman in its ad campaigns, runs advertisements falsely suggesting cheap loans are available to all borrowers.

In fact, low interest rates are available only to active-duty military personnel and their families while other borrowers are charged more than a 139 percent annual interest rate, according to the state's complaint.

The company was also accused of making abusive phone calls at all hours of the day to harass customers who were not paying back their loans.

???City News Service


lrhall41

Submitted by on Wed, 08/26/2009 - 10:02

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atimes.com/business/la-fi-cash-call25-2009aug25,0,2589182.story
latimes.com
LENDING
CashCall agrees to pay $1 million to settle state allegations it ran deceptive ads, used 'loan shark tactics'
The lender charges most customers high interest rates while advertising that its rates are low, the California attorney general's office says in a civil complaint.

By Nathan Olivarez-Giles

August 25, 2009

Fast-money lender CashCall Inc.-- known for TV ads featuring faded child star Gary Coleman talking about his financial problems -- agreed Monday to pay $1 million to settle state prosecutors' allegations that the company ran deceptive ads and used "loan shark tactics" to collect debt from customers.

CashCall specializes in making loans in as little as one day, with only a signature needed to get cash.

But the Anaheim company charges most customers extremely high interest rates while advertising that its rates are low, according to a civil complaint filed by the California attorney general's office. When customers fell behind on payments, CashCall used illegal debt collection practices, such as making verbally abusive telephone calls "at all hours of the day and night," the complaint said.

CashCall didn't admit to any wrongdoing in the settlement and assisted the attorney general's office in its investigation of the company, said Daniel Baren, CashCall's general counsel.

In its complaint, the state attorney general's office depicted CashCall as a deceptive lender using aggressive tactics to get its money back.

The company, which was started by Paul Reddam, who also founded and later sold mortgage lender DiTech Funding Corp., runs advertisements that falsely suggest that cheap loans are available to all borrowers, according to the state's complaint.

Instead, low interest rates are available only to active-duty military personnel and their families, in keeping with limits under federal law.

CashCall charges a 139.34% annual rate on its $2,600 consumer loan, state prosecutors contend. At that rate, a borrower would pay $10,762 over the 36-month life of the loan, said Scott Gerber, a spokesman for the state attorney general's office.

CashCall's Baren said the state's example exaggerated what borrowers usually paid because most borrowers pay off their loans early and avoid accumulating such interest.

California Atty. Gen. Jerry Brown said in a statement that CashCall used collection methods that violated state law, including causing borrowers to incur bank fees by repeatedly trying to collect payments despite knowing there were insufficient funds in the borrowers' accounts.

The lender would then threaten to begin legal action and wage garnishing against borrowers to intimidate them into paying back their debt, the state said.

In some instances, the attorney general's office found evidence that CashCall improperly discussed private financial information with borrowers' neighbors, friends and co-workers, Gerber said.

Monday's court judgment orders CashCall to pay $1 million in civil penalties and legal expenses. CashCall funds about $1 million in loans each month, Baren said. Two years ago the company was funding about $20 million a month in loans, he said.

Under the settlement, CashCall has to withdraw deceptive ads and train its employees to ensure that the company stays in compliance with court orders, court documents said.

The company also was ordered to fire any employee who violated the terms of the settlement and to record and maintain a detailed log of all telephone calls with prospective and current borrowers as well as all customer complaints, documents said.

Coleman's ads helped bring the company to prominence, but he is no longer CashCall's pitchman.

The actor, known for his role on the 1970s and '80s TV show "Diff'rent Strokes," became the firm's spokesman after receiving a loan from the company, Baren said. Coleman repaid the debt by endorsing CashCall in commercials, but that agreement ended a couple of years ago, Baren said.

nathan.olivarezgiles@

latimes.com

Copyright ?? 2009, The Los Angeles Times


lrhall41

Submitted by on Thu, 08/27/2009 - 11:15

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CashCall Lawsuit Proceeding in Federal Court
Plaintiffs defeated an effort by CashCall to have the entire putative class action lawsuit dismissed.

Plaintiffs defeated an effort by CashCall to have the entire putative class action lawsuit dismissed. In a ruling by Magistrate Judge James of the Northern District, the Court found that plaintiffs adequately alleged that CashCall made unauthorized withdrawals from consumer's checking accounts in the same month, made loans with unconscionable terms and engaged in harassing debt collection practices.

If you would like more information about this case, please contact Amber Rocha or Kathy Becker at (415) 477-2410. Thank you.


lrhall41

Submitted by on Thu, 08/27/2009 - 11:22

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I had Cash Call for over 4 years. In that time, I paid them off twice before even getting close to the end of the term. My husband passed away in 2005 wherein we head a Cash Call loan. I paid that off immediately after he passed away. Since that time, I took out nother loan with them and had paid that one of before the end ofthe term. I then purchased a third loan with them and when I was having trouble in meeting the payments on time (anywhere from 5 to 10 days after the due date) Cash Call ("CC") started harrassing me during all hours of the night, as late as 11 p.m. to midnight, calling my employer and giving false names to try to get through to me, they harrassed the receptionists at work. They then would send me another bill showing the late payment, along with the current payment then charging me late fees which was well over what they should have charged. The interest rate during that time was approimately 21%. When I did send in the payment, they only deducted the principle in the amount of $5 or $10 and then they would send me another bill for that same month which now showed the balance only being deducted by $5 or $10 and then most of the time, nothing was applied to the principal.

Since I was throwing my money away every month, I decided to stop making payments due to all the harrassments at work and at home and letters. I now have acquired high blood pressure problems, and this has ruined my credit completely wherein I cannot even get a loan. Now they turned it over to a collection agency which they are showing over a $12,000 balance which I had only taken out a $10,000 loan with them over a year ago.

One more thing, they are the rudest company I have ever dealt with. Their personnel on the phone and in person, treat a person as if they had stollen their money. They talk to you worse then you would talk to an animal.

I hope someone reads this because this company needs to go out of business and stop taking advantage of ones' personal problems and/or age. I am a widow after 25 years of marriage and I have been struggling to keep my affairs in order for the last 4 years and with a company like this, it could put me in my grave along side of my husband.


Anita Potts
(909) 693-0307


lrhall41

Submitted by on Mon, 08/31/2009 - 13:23

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I want to know if there is an attorney in the state of Pennsylvania, preferrably Philadelphia, PA who can handle illegal lending practices by Cash Call also. And thanks for the information regarding their practices.


lrhall41

Submitted by on Tue, 09/01/2009 - 07:04

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I too took out a loan in 2005 to help pay my daughter's legal fees in a messy divorce action. Her husband is a sociopath and we were fighting to protect my granddaughter and daughter from continued physical and verbal abuse. I borrowed $5000 and was told that the amount would decrease quickly if I started making double payments after the first two years. My company closed in 2007 and I have continued to make the monthly $254 payments. I have already paid nearly 12000 on the loan and when I last checked the payoff was still $5000 the original note balance. When I heard of the lawsuit ( a mere mention on the morning news about a week ago) I started researching. It is comforting in a way to know that I am not alone in this trap. At the same time is in unfortunate that so many others have fallen into the same hole. A million dollar settlement is a drop in the bucket for these guys. I did not hear if they were going to be restrained from continuing these unlawful if not downright illegal practices. I have a friend who defaulted on his loan with Cash Call last year and they physically sent representatives out to threaten him. I haven't spoken to him since shortly after he related this information to me. Unfortunately it was too late for me.
IF there is additional class action against these people I would be glad to participate right to the point of testifying if necessary.....Even out of work I have continued to pay my bills and tried to maintain my credit. This bill should have been paid off a few years ago if reasonable rates had been charged. Please contact me at removed by Shazzers per the TOS.if you have any information or advice. E.J. Riverside County.....I am remaining annonymus due to concern about harassment or other
actions which might be taken against me if I reveal my identity......Thanks


lrhall41

Submitted by on Sat, 09/19/2009 - 12:59

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I had Cash Call nightmares, as well. I defaulted on the loan, about 4 years ago now. They called ALL the time. I made double payments, too,...thinking the balance would go down. It never did. They don't listen to what the 'consumer' has to say..they could care less. The last time I talked to them, they said they would 'send someone to my home and collect the money' (this was close to 3.5 years ago. I never paid them another dime and I never heard from them again.


lrhall41

Submitted by sdchargers_63 on Sat, 09/19/2009 - 21:41

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We too have CC. How do we join the battle against them?


lrhall41

Submitted by on Thu, 09/24/2009 - 12:24

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A quick trip with your paperwork to the small claims court will do the trick. Sounds like you have paid enough money to CC.


lrhall41

Submitted by on Thu, 09/24/2009 - 12:31

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We made the mistake of taking out a loan with them too. We all know - at least those of us who unfortunately have a loan with them, that their interest rate is beyond outrageous. They call us from a private number most of the time. We dont have an answering machine now and when I upgraded our phones I didnt think about it but now I am glad we dont have one. All they can do is call and I have caller id so I could care less if they call us all day. I just hit the delete button. We tried to work with them too when my husband's co failed(has another job now) but they were jerks. Frankly I dont care if they sue us or not. We will tell the judge we cant afford to pay what they want and let the chips fall where they may. They dont want to take you to court because of the cost of litigation and the court will most likely allow a payment of less than they were getting. I hate it has to be this way and I wish we had never gotten involved with them. We have paid more than we borrowed but good grief they want 50% more. Not happening. We will take our chances in court.


lrhall41

Submitted by on Sun, 10/04/2009 - 11:15

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Quote:

Originally Posted by Anonymous
We made the mistake of taking out a loan with them too. We all know - at least those of us who unfortunately have a loan with them, that their interest rate is beyond outrageous. They call us from a private number most of the time. We dont have an answering machine now and when I upgraded our phones I didnt think about it but now I am glad we dont have one. All they can do is call and I have caller id so I could care less if they call us all day. I just hit the delete button. We tried to work with them too when my husband's co failed(has another job now) but they were jerks. Frankly I dont care if they sue us or not. We will tell the judge we cant afford to pay what they want and let the chips fall where they may. They dont want to take you to court because of the cost of litigation and the court will most likely allow a payment of less than they were getting. I hate it has to be this way and I wish we had never gotten involved with them. We have paid more than we borrowed but good grief they want 50% more. Not happening. We will take our chances in court.


I don't blame you one bit, in fact, you're probably better off if it does go to court, or if it goes to a collection agency. At least you have more rights if it does go to a collection agency. FYI, if CAsh Call does happen to send this to a collection agency and they call you, don't admit or deny owing this without the proper documentation.


lrhall41

Submitted by Shazzers on Sun, 10/04/2009 - 11:59

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I got a loan from them for $10,000.00 like 3 years ago , they were deductint the balance from my checking account , when i called to get a pay out so i could include it in my refianance to my surprise (i wet my pants) my balance is over $82,000.00 ... Instead of refianancing , i decided to bankrupt them , and i was discharged from it, i lost my credit . But at least cashcall didnt get any of there stolen scam money


lrhall41

Submitted by on Tue, 10/13/2009 - 13:45

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:pthat's great a class action law suit against cc. that means everyone will get a $5.00 settlement check and the attorney's can buy a new beach home. i was in a class action law suit against first usa an got a check for $5.00 and the attorney's settle for millions. good luck


lrhall41

Submitted by on Tue, 10/20/2009 - 16:19

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I have a few payments left with CC. I am a week late with them on my last payment due since I closed my bank account.
I cannot believe the interest rate they charge.

I am on board with the lawsuit!!! It should not be legal to charge that much interest on a loan. By the time the loan is paid off I will have paid them over $6000.00 on $2600.00 loan.

Just awful.


lrhall41

Submitted by tsrfgrl on Thu, 10/22/2009 - 10:53

( Posts: 27 | Credits: )


Quote:

Originally Posted by Anonymous
How do I find help with these con artists in MD?


Start a new topic and list the following information:
-Names of each pdl company.
-Whether they are store front or Internet.
-How much you borrowed.
-How much you paid so far.
-The state in which you reside.


lrhall41

Submitted by Shazzers on Thu, 10/29/2009 - 21:03

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In CA the lawsuit have a final judgment and permenant injunction yet their web site still shows them funding loans in CA, with a $75 loan fee and 139.34% interest. Their example shows a $2600.00 loan, customer gets $2525 of that and then pays $298.94 per month for 36 months! Yikes! you end up paying back over $10k for that $2525.00. Not a good deal at no matter how much you need money; these people should be drawna nd quartered fro their predatory practices towards those desperate!


lrhall41

Submitted by on Sun, 11/08/2009 - 08:52

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I would totally be on board but I am in WA.... I have a loan from them from when I was trying to take care of some medical stuff.... I have been paying "regularly" and until I can get a good chunk of cash I probably will still have to. The worst part is that for what I have already paid them for a $2525 loan I could probably have paid off some other stuff completely.... Let me know what we can do.


lrhall41

Submitted by tyleeash on Mon, 11/09/2009 - 12:10

( Posts: 143 | Credits: )


I too took out a $2600 loan with Cash Call. Today I received an email stating that they MAY garnish my wages. The email states that they have verified my employment (well duh, they call me at work everyday). Has anyone actually been served by them? It seem they are all threats.

Btw......... I know a great class action attorney in SoCal and will call him to see if we can start something


lrhall41

Submitted by on Tue, 11/10/2009 - 20:50

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Quote:

Originally Posted by kscornell
I had a great conversation with Attorney Arthur Levy, who is working on the cashcall lawsuit in California. I also invited him to visit the forums, which I certainly hope he does and welcome him.
Here is what I can say on the lawsuit in a nutshell from Arthur: it is being filed in Los Angeles County and concerns CC's lending practices, specifically interest rates, fees and CC's practice of debiting on days that weren't agreed on by the consumer. Also they are looking at CC's charging bounced check fees that are higher than California state law allows. And more importantly, they are working to see that Cashcall doesn't engage in harassing activities.
Arthur agreed to let me give his contact information, but wants it in a PM to individuals, due to the volume of calls he could get.
He said that he would be willing to help if someone is facing an extreme situation with CC right now.
I told him that I am ready to sign on in the battle and know that many other members of the community would too!

I have a CC loan that I've paid faithfully; however the balance of my loan seems to not be decreasing. I would like to get Arthur's contact information; because I would like to be part of any suit against CC.


lrhall41

Submitted by on Sat, 12/05/2009 - 20:44

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What can I do about this company. My girlfriend took a loan out with themfor 2600 and has paid faithfully until 3 months ago. that means she has paid the over 4000 for this loan that still has a balance of 2600. they call her all the time and we have offerd them settlement amounts of a 1000 but they will not accept that amount. I understand that she signed their contract but when it comes down to it I don't think that what they are doping is right or legal. How can someone pay over 2 years of payments and still be with that type of balance? What is the maximum finance charge someone can charge in CA? and what kind of loan is this? I am a finance manager @ a dealership and have never seen anything like this!
She stoped paying them 3 months ago and this loan has destroyed her credit. We seriously need some legal help with this and if anyone knows where we can get some help please contact me. my cell is removed by Shazzers for your protection. Thanks, Chris


lrhall41

Submitted by on Mon, 12/21/2009 - 15:40

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I definitely need to talk to someone who can help about this. I took a loan with them back in 2003 for 10k. I have been paying for over 6yrs and my principal is still over 6k. I recently signed up for a hardship deferred payment with them back in October so I wouldn't have to pay until March 2009. They recently tried to debit my account in December. They started calling my parents phone(not mine which I have giving them and they always verify everytime I call) trying to recoup what they call a late payment. When I called them on this and they noticed the mistake, they told me a supervisor would call back to explain the screw up. 2 days no call back, and my account is messed up because of this.


lrhall41

Submitted by on Wed, 01/06/2010 - 16:45

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Quote:

Originally Posted by Anonymous
I had a great conversation with Attorney Arthur Levy, who is working on the cashcall lawsuit in California. I also invited him to visit the forums, which I certainly hope he does and welcome him.
Here is what I can say on the lawsuit in a nutshell from Arthur: it is being filed in Los Angeles County and concerns CC's lending practices, specifically interest rates, fees and CC's practice of debiting on days that weren't agreed on by the consumer. Also they are looking at CC's charging bounced check fees that are higher than California state law allows. And more importantly, they are working to see that Cashcall doesn't engage in harassing activities.
Arthur agreed to let me give his contact information, but wants it in a PM to individuals, due to the volume of calls he could get.
He said that he would be willing to help if someone is facing an extreme situation with CC right now.
I told him that I am ready to sign on in the battle and know that many other members of the community would too!

I definitely need to talk to someone who can help about this. I took a loan with them back in 2003 for 10k. I have been paying for over 6yrs and my principal is still over 6k. I recently signed up for a hardship deferred payment with them back in October so I wouldn't have to pay until March 2009. They recently tried to debit my account in December. They started calling my parents phone(not mine which I have giving them and they always verify everytime I call) trying to recoup what they call a late payment. When I called them on this and they noticed the mistake, they told me a supervisor would call back to explain the screw up. 2 days no call back, and my account is messed up because of this.


lrhall41

Submitted by on Wed, 01/06/2010 - 16:55

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I recently sent them a ACH revocation (and they have honored it... I guess the CA lawsuit at least made that point clear). I sent them a letter asking for a statement showing how my payments had been applied etc..etc.. and they sent me back the loan paperwork. But because of what they sent me they sent my account to collections which has enabled me to receive an email address. I emailed my "personally appointed loan counselor" and requested everything again. I also pointed out that according to their website they are not able to loan in WA anymore and asked if it was because in WA state the max percentage interest rate of a an unsecured loan is 12% or 4% above the federal reserve rate or something like that. I specifically asked for a rate reduction so that I would be able to actually pay it off someday. I haven't heard back yet - and will keep you all posted but I think they may be on their way to being out of business one of these days especially since people on this site have some of the same issues as those in CA.


lrhall41

Submitted by tyleeash on Tue, 01/26/2010 - 15:29

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