Advice re: Cash Call loan
Date: Tue, 09/04/2012 - 14:46
Hi, thanks for all the great information on this forum. I have read a lot of information, so I will try not to re-ask anything, but would appreciate any advice specific to this situation below if you have ideas or suggestions.
A friend of mine in California took out a $2,600 loan to send money back home when his mom fell ill. He says he just called them and he has paid 14 months of $294.xx payments that are automatically debited from his account (approx. $4,116 so far paid). They also told him the current balance is around $2,800. He said that he called them first about the loan (he does not really have or use a computer) and when they told him the rate was "1.5" or something he did not understand this was 150%. Of course, he is embarrassed about this and I am not sure yet what, if any, written documentation they have actually sent him, as he made this loan over the phone and was thinking it should be paid off or close to paid off after 14 months of nearly $300 payments.
He already received a general notice from a law firm (Sturdevant, I think) which says he is included in the certified class of that class action suit underway now. Because it is linked to his bank account - he has always been current and on time, except for once when his employer's direct deposit didn't go in on time. He has not had trouble with harassing calls, but of course, realizes now that this thing will only be paid off at the current payment rates (he cannot afford more) with over $10k. I know sometimes class actions can pay a little, but mostly goes to attorney fees and not much for the consumer and, of course, many years away.
I was just going to give him the money to pay off the remaining balance, but after reading here, I thought I'd get your advice. Please add or let me know if there is a better way of handling this in the best way.
I am going to have him do the following:
1. File a complaint with the California Attorney General
2. At the time he made the loan, he was married and his wife in the military - it seems that Cash Call is not a payday loan subject to federal protections in this law, but I thought he should tell them that they can't charge him more than 36% to see if that possibly makes any difference?
3. I was thinking he should try to get a settlement for less than the remaining balance? It seems awful that he would pay another dime more up to the balance remaining of $2800, when he has paid $4100 over 13 months already? But, I guess it would be worth trying...
4. After he pays them off, I am advising him to close his bank account which is linked to Cash Call.
What else or what other/better options do you think he has for this? Thanks very much for your knowledge and advice!
A friend of mine in California took out a $2,600 loan to send money back home when his mom fell ill. He says he just called them and he has paid 14 months of $294.xx payments that are automatically debited from his account (approx. $4,116 so far paid). They also told him the current balance is around $2,800. He said that he called them first about the loan (he does not really have or use a computer) and when they told him the rate was "1.5" or something he did not understand this was 150%. Of course, he is embarrassed about this and I am not sure yet what, if any, written documentation they have actually sent him, as he made this loan over the phone and was thinking it should be paid off or close to paid off after 14 months of nearly $300 payments.
He already received a general notice from a law firm (Sturdevant, I think) which says he is included in the certified class of that class action suit underway now. Because it is linked to his bank account - he has always been current and on time, except for once when his employer's direct deposit didn't go in on time. He has not had trouble with harassing calls, but of course, realizes now that this thing will only be paid off at the current payment rates (he cannot afford more) with over $10k. I know sometimes class actions can pay a little, but mostly goes to attorney fees and not much for the consumer and, of course, many years away.
I was just going to give him the money to pay off the remaining balance, but after reading here, I thought I'd get your advice. Please add or let me know if there is a better way of handling this in the best way.
I am going to have him do the following:
1. File a complaint with the California Attorney General
2. At the time he made the loan, he was married and his wife in the military - it seems that Cash Call is not a payday loan subject to federal protections in this law, but I thought he should tell them that they can't charge him more than 36% to see if that possibly makes any difference?
3. I was thinking he should try to get a settlement for less than the remaining balance? It seems awful that he would pay another dime more up to the balance remaining of $2800, when he has paid $4100 over 13 months already? But, I guess it would be worth trying...
4. After he pays them off, I am advising him to close his bank account which is linked to Cash Call.
What else or what other/better options do you think he has for this? Thanks very much for your knowledge and advice!
Unfortunately those loans are legal in California. Best thing yo
Unfortunately those loans are legal in California. Best thing you can do is request them to give a settlement payoff as your firned has already paid double the principal... if you scream and yell enough and get to the right person they might offer you a couple hundred dollars settlement.
Quote:
At the time he made the loan, he was married and his wife in the military - it seems that Cash Call is not a payday loan subject to federal protections in this law, but I thought he should tell them that they can't charge him more than 36% to see if that possibly makes any difference? |
That might help in your fighting with them to bring down the interest rate or the settlement amount, but that wouldn't apply as the DoD regulation in question is for credit financed at 91 days or less and for credit financed at 2k or less which this loan is obviously not meeting either criteria.
Rugbysister did your friend take out a loan with Cashcall or Wes
Rugbysister did your friend take out a loan with Cashcall or Western Sky who then sold the loan to Cashcall?
As far as i can tell,it was made directly with cash call, thats
As far as i can tell,it was made directly with cash call, thats who he called and they are listed as the lender on the agreement... Thank you!
