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CashCall Ordered To Pay A $13 Million Penalty

Michael Agruss

Written and Reviewed by Michael Agruss

  • Managing Partner and Personal Injury Lawyer at Mike Agruss Law.
  • Over 20 years of experience in Personal Injury.
  • Over 8000+ consumer rights cases settled.
  • Graduated from the University of Illinois Chicago School of Law: Juris Doctor, 2004.

After a three-day trial, West Virginia Kanawha Circuit Judge Louis H. Bloom entered two orders this week ruling against California-based internet payday loan company, CashCall, for a wide range of abusive debt collection practices. CashCall was ordered to pay civil penalties in the amount of $13 million, and to cancel all outstanding debts by West Virginia residents (an estimated 292 consumers).Though West Virginia consumer protection laws limit interest rates to 18 percent, CashCall charged exorbitant interest rates of over 90%. Under the 90% interest loans, borrowers pay nearly as much in interest every year as they borrow. In fact, the interest rate on the loans is so high that it would take 3½ years to pay off a loan of $2,500.00, with total interest payments running nearly three times the amount originally borrowed. CashCall had attempted to circumvent the consumer protection laws by entering into what the Attorney General dubbed a “sham relationship” with First Bank & Trust of Milbank, South Dakota. Though CashCall was the true lender, it appeared on paper that the loans were issue by First Bank.That in itself would have been enough to deserve penalties, but CashCall went above and beyond, by engaging in abusive and harassing collection practices (sometimes 20-25 phone calls each day) when consumers inevitably defaulted on their loans. CashCall was also accused of contacting (and disclosing debts) to borrowers’ friends, family members, coworkers, and even references, causing the borrowers’ embarrassment and humiliation (surely as CashCall intended). Cashcall probably did not anticipate the flood of complaints that borrowers subsequently made to the West Virginia Attorney General’s Office as a result, which prompted an investigation into CashCall’s lending practices. The Attorney General filed suit in 2008.Apparently, CashCall has used this tactic in other states with some degree of success and without consequences (so far). Although a California class action suit was filed in 2011 against CashCall, the case has since been voluntarily dismissed by plaintiffs. At issue were CashCall’s 90% interest loans and included thousands of borrowers. Plaintiffs had alleged that CashCall violated the class’ rights under California’s usury, predatory lending laws, and debt collection laws by using high interest rates, unfavorable loan terms, and protracted repayment terms making it impossible for most borrowers to repay their loans within any reasonable period of time, or ever, without defaulting.If CashCall, or any other collector, has harassed you over a debt, whether they called you excessively, threatened you, made misrepresentations when trying to collect old debts, called you at work despite knowing you cannot receive these type of calls at work, disclosed your debt to a third party, tried to collect a debt from you that you did not owe, or left you a voicemail message without the proper disclosures, contact Mike Agruss Law, for a free case evaluation. Founding attorney, Michael Agruss, has settled over 1,500 debt collection harassment cases. Now, Mike Agruss Law, wants to help you, too.

Submitted Comments

Mercedes
7 years ago
Hello, are you guys doing a class action against Cash Call? or can I do my own? I just was reading about them and felt they abuse people with 116% aprs.. it is preditory lending. I do have a loan currently - im getting ready to pay it off. I had two other ones with them and I would like all of my money back i have ever paid to them in principal and interest!
Holly
7 years ago
I am seeking information about Cash Call. I took out a loan for $5,000 last August and have paid back approx. $5,000 in monthly payments. I have a friend who is willing to loan me the money to pay this off but they are saying I owe them over $6,300 to pay it off, do I have any recourse. I did not read the contract at the time and simply clicked on a box at their website to initiate the loan. I was in a deep depression at the time and have since started seeing a psychiatrist and taking medication to treat this condition. I contacted Cash. Call 2 months ago by sending them a letter explain that I have had to take out payday loans in order to make monthly payment of approx. $500 and that I can no longer do that as it is too stressful. They have called me constantly and threatened me to the full extent of the law but are not clear what that entails. My balance due in a little more than $5000 and I don't understand how they can charge me #1,300 to pay off the loan!
Chris
7 years ago
I've been trying to figure out what to do about my cashcall loan. I took aloan of 2600 dollars. an amount that I didn't want or need. but the operator convinced me I could pay it back immediately. and I just don't see how I can afford the loan that they issued me even though I stated I multiple times I would find another way to get money. he kept hounding me until I finally said okay!
Lisa
7 years ago
On this lawsuit against cashcall I am from West Virginia, I am one of the clients, is the case already won or we going to receive anything!
Shanika
3 years ago
Well cash call have been harassing for years years over 20 plus years and I have filed chapter 7 bankruptcy and gotting a discharge and they would spam and fake documents to my local court for the sheriff would come out to my mother house cussing and being disrespectful and she is sick and it's alot going in 2020 be harassment

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