Cash Call - Notice of Intent to Initiate Arbitration Claim

Do you have your original contract? Just curious, if you do, what does the arbitration clause say?

Shazzers - Here's a copy of the contract. I've bold faced the arbitration section.

Signed Document




Please see the remainder of this document for additional information about nonpayment, default and any required repayment in full before the scheduled date.
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In this Promissory Note & Disclosure Statement ("Note"), the words "I" and "me" mean the person signing as a borrower. "You" and "your" means First Bank & Trust, Milbank, SD, and any subsequent holder of this Note.
The Truth-in-Lending Disclosures above are part of the terms and conditions of our agreement.

That's what I would do! Opt out, based on some of the articles and posts made by members of this forum, arbitration is a farce and always goes in favor of the creditor! :shock:

I don't think he can opt out at this point since it's been over 60 days from the date of his loan funding?

I've never dealt with this company, but it's clear how ruthless they are just by reading other posts by other members here. I'm not totally possitive how effective it would be to opt out, but it looks as though the clause is there, in black and white. In my opinion, that is what I would do, unless someone with more knowledge about this comes along with more information on how to go about this. You might want to hang tight and see what others say about this. :?

Shazzers - It states that I have to do it within 60 days of the loan being funded. It doesn't appear to be an option at this point.

Ahhh crap, you're right Alias, that freakin 60 day clause! Well, maybe someone else will have some good advice Goldenhelmet, hang in there!

Quote:

Does you stste allow such high interest rates? Sounds like usury to me.

cash call is a legal installment loan backed by a bank. They will likely get award through arbitrator & send to court for judgment.Once reduced to judgment the interest rate defaults to your state judicial interest rate which is a lot lower than what is being charged.You either inform the arbitrator of your intention to demand court trial or accept their award.

The way it stands now, they are charging you roughly $6.67 per day in interest (96%/360*2500), or $200/month. Since any payments are first applied towards the unpaid accrued interest, when you send in $108 - that is not even covering all of the interest that is due; so your payments will never ever touch the principle at that rate. If they won't lower the rate, you will never pay this off by sending only $108/month.

Sometimes it is better just to let them go the legal route. Like cajun said, when they file a lawsuit, the interest stops. When they actually get a judgment, then interest starts back up at the statutory rate (usually 9-12%).

The other thing is that if they do file for suit/arbitration, they cannot charge for the remaining 27 months worth of interest -- they can only charge the interest that has actually earned on the account up to that point in time. So if they sue, then they would only sue for $2900 give or take a few days worth of interest depending when they file.

Another thing you might check into --- make sure the interest isn't compounding every month. Being backed by a bank, I don't think that they would flagrantly violate the laws -- but in a simple interest contract the interest cannot compound onto the principle. If it were, then they would be charging you interest on your unpaid interest, which they cannot do.

OK - But would I still get to pay over time - monthly payments, or is the entire amount due immediatley? If I can't pay it all immediately, then what - they garnish my wages?

If they know arbitration will result in a lowering of the interest rate to my state max, why wouldn't they just do a debt modification agreement to that effect - lowering the interest rate? Why go to arbitration if that's going to be the end result? I don't want out of the obligation. I want the terms - interest rate and monthly payment amount - lowered to a humane level. I've already payed them over $3,500 on a $2,500 loan and the principal has actually INCREASED.

Normally they let the loan be late for a while before they arbitrate or sue. The reason they do this is because they can charge you 99% interest until the loan defaults. I think making a partial payment that doesn't even cover the interest is probably the worst thing you can do. I believe that will just lenghten the time that it takes the loan to default which means it cost you that much more in interest. I personally would not send them money until the either lower the rate to the state legal rate or until they arbitrate and then sue which will then lower the rate to the state legal rate. The amount due will baloon though if they sit on it a long time which is their main strategy. The want that amount to be as large as possible before the loan defaults.

Yeah, when I was dealing with them, i got a letter that they would seek legal action if I didn't pay. Then nothing for 8 months until I answered the door to the sherrif serving a summons.

The Sherrif did tell me that he had a bunch of other CC summons to serve, and that it seemed like they waited until they had enough people in the area to sue to make it worth their while.

But all my dealings with them was through court - No arbitration for me.

I don't understand why their loans are legal. In my opinion they are nothing more than loan sharks abusing the lending system. I think the same way about PDL companies. I emailed a few letters about it to various political agencies but I guess they haven't received enough complaints yet. In my opinion interest rates should be capped at 5-10% plus prime but I am sure it will never happen. There is really no reason why someone should be paying over 15% to borrow money.

The loans are legal because federal law allows FDIC insured institutions to import their home state's interest rates when doing business in other states. DE has no interest rate cap, so they headquater themselves in DE and use those laws to lend in other states.

I dealt with Cash Call, at one time, too. I tried calling them, when I was falling behind in payments. God......they try every tactic to scare you to death. When I called them, FINALLY I let THEM know what I could afford..not what they SAY I had to pay, or go to jail, be arrested, etc. "Well,"..I said..."I'll send what I can per month." They said they will NOT accept anything less than my original agreement payment. Haven't sent them a cent since then. I alled them up, again, about 3 months later. I found out the 'sold' my account to a CA. I asked a rep why I wasn't notified. According to the rep, they din't have to notify me...what kind of crap is that?! Anyway....NOW I'm dealing with the CA.....who is just as rude and just as ignorrant. I've been hung up by this CA. However....I've seen the name of this CA on the forums, as being a possible fraud company. Any advice for me?

Just out of curiosity, who is the CA? I've had a CA hang up on me twice in the past few days.

The CA is called Global Accredited Acceptance. I've heard of a few 'Globals' on this forum. Found out these are 'sister' companies. I've had the CA ( actually they call themselves some kind of "firm.") hang up on me a few times. They took my Cash Call loan over. I don't know how Cash Call 'sold' my loan to them, though. Have you heard of Global, GUEST?

Is this the same one sd_chargers? I found this on the Bud Hibbs website:

SD Chargers - "guest" was actually me (forgot to log in). The CA that hung up on me twice last week (and for no reason at all, I was just asking/answering questions) was Amsher, who Prosper uses whenever a loan goes more than 30 days past due. They are really rude. The first girl who hung up on me said that I had to call back in one hour when "Tiffany" was in her office (Tiffany had called me at work). The second person was a very rude male who hung up on me when I told him I no longer had a home phone he could call, and I was also asking him for their fax #. He said, "OK, you have a nice day sir", and hung up on me. I since found their fax # and faxed them a C & D letter no to call me at work or anywhere else, or contact relatives/references, etc. They have a very poor reputation from what I've read.

I'm going thru the exact same thing right now.

SPAM SPAN & SPAM

Yep, SHAZZERS...those are the people. However....when they call me, it's not an #800 number and not the number that is listed in your 'ad'. Now..on my CR, Global AND Cash Call are BOTH on there for the same debt. However....different amounts show up. Have any suggestions what I can do? From reading your post, SHAZZERS, Global isn't a 'good' CA. When I DO talk to them, they tell me they are not a CA at all.they say they are a "firm". What the heck does that mean.."a firm?" From what I've been reading, on the forums, my account, with Cash Call is the ONLY one they have 'sold'. Why not anyone elses accounts? Gosh.I 'don't get it.'

Goudah - what happened in court? Could you tell us your story?

i'm almost 3 months behind. they call all the time. now they're coming up private, or text paging my cell. i've received 2 letters of agreement saying to pay $254 and they'll make everything current. i just want out. i've also received the arbitiation intent. what happens next? they're not getting another dime. how could i be so stupid?

i'm in illinois if that matters. i'm ready to write letters if someone could help me on what type to send them.

Marlin, send them a DV letter along with a C&D letter. You can find templates of each on this site.

Cash Call can be very devious.....so, please watch yourselves. Especially, with people who have NO IDEA how to deal with them and their 'laws' ( like me!!). they will try and scare they heck out of people. However......be advised, they are NOT a PDL. When I fell behind in my payments, they called me contantly. They called my references, alot, too. I finally 'turn the tables' on them and told THEM I could only pay 'this or that' to catch up. They don't want to hear what people have to say. I finally had to stop paying them.....just couldn't work with them. So........all of you who are dealing with Cash Call, take a deep breath. LOL I din't see Cash Call on the TV ads for a LONG time. However......last night I saw an AD on them, with Gary Coleman hosting the AD.

If anyone would like to talk to me about Cash Call, I'll be more than happy to help anyway I can!! :)

My DH lost his job almost a month ago so i'm unable to keep up with the payments. If I DV and c&d them and stop paying all together, what happens next? I've already paid them $3989.50 on a 5K loan and just like everyone else here, I owe $700 more than the original as it stands right now. Worst part is I can't remember who I put down for references if I even did. My home and family come first right now and they only care about their money.

I've been through it with CC, earlier this summer, when I was trying to figure out what to do, I told them my hours had been cut back, and finally they offered me a lower payment plan. (no my hours had not really been cut back, actually I'm on salary, but it worked)...I made 2 pmts with the lower pmt, and now we are filing chapter 13. Have you tried to ask for a lower pmt? I found that you really unfortunatly have to make up something in order for them to work with you. I see your husband lost his job, but is the loan in his name or yours? Cause they will only work with whoever the loan belongs to. Good Luck Reny

the loan belongs to me only and they refuse to take into account that I am the only one working and they could care less if my mortgage gets paid. I'd rather have them send me to a CA at this point. Also, should I send a dverification or dvalidation letter?

I kinda "inflated" all my bills when they ask me about the hardship. And yes they don't care about your other bills, or if your spouse is working or not. I was told, "Well we only based the loan on your income, not you and your spouse. I'm not sure what a dverification or dvaildation letter is, hang tight a guru will be along to answer that one for you.

I got the same shpiel about being based on my income alone. I just faxed the cease phone contact and eft withdrawals to two of their fax numbers.

I received another notice of arbitration proceedings. This one dated 9/19 claiming $5,370. It states they will initiate in 10 days. How do I handle this?

Cash Call doesn't give a darn about other thinhs you may have. Or...if they DO give you a 'great' payment offer, if you add up everything, you find out it's not a good offer at all. In fact, you may pay even more than your original contract says. I had such a difficult time with them. They don't give you much of an option for anything. You almost have to play a role-reversal (mentally) thing with them.

So they called your references even when they got you on the phone? I was told they would only contact my references if they could not get me on the phone. I am only 30 days behind and the phone calls have been ceaseless and yes they are very rude. I am having to take my son to Dallas for surgery and told them of the extra expense. I told them he could not hear out of his right ear at all and only 60% out of his left. They asked if it was really that important and could I not postpone it??!! These people are incredible. I've had the loan for a year and a half and never missed a payment. Now I've missed one and they act like I'm scum. I really don't want them calling my references so I answer the phone when they call. Just curious if they started calling yours because you quit answering their calls?

What I find amazing with Cash Call is that the payoff amount keeps going up instead of down. I too made the mistake of taking a loan with them, but am hoping to pay it off in the next month. I was just surprised that the amount had grown and continues to grow the longer you are into it. I will have to give credit to the rep who signed me up. He stated at the time it was in my best interest to pay if off as quickly as possible - which is very true.

you're right. The balance DOES NOT go down,..it seems to go up ( God knows why!!). To answer someone's question from above...yes, even though Cash Calll DID talk to me on the phone, they continued to call my references. They can be VERY sneaky.

sDCharger, then what happened???? Did they just leave you along???

Well.................I just couldn't afford my payments. After about 3 months, Cash Call 'sold' my loan to someone else. When they did that, they FINALLY left me and my references alone. Even when they DID reach me, they would call everyone else, too.

i have a loan with them to they are horrible to deal with can they garnish my wages thru my work at all...

What state do you live in, PEANUTS? I live in PA. In 'my' state, garnishemnts aren't allowed. Yep...you're right...they ARE horrible to deal with. I hated dealing with them. They called constantly and never left me alone.

i too have a loan with them.i have a question,the loan is in my name only and i lost my job,i have no income at all.do you think if i called and told them that they could do something for me?