California AG Obtains $1M Judgment Against "Fast Cash" Lender Accused Of Loan Shark Tactics
From the Office of the California Attorney General:
- Attorney General Edmund G. Brown Jr. [...] forced CashCall, Inc., an Anaheim-based fast-money lender, to stop using "loan shark tactics" in collecting debt, including abusive calls at all hours of the day and night and empty threats of law enforcement
action.(1) The court-ordered judgment also forces CashCall to stop misleading consumers with deceptive advertising and pay $1 million in civil penalties and legal expenses. CashCall used former child actor Gary Coleman as its television spokesman. "CashCall preyed on consumers desperate for cash, charging triple digit interest rates and using loan shark tactics to collect on their debts," Brown said. "This judgment forces CashCall to stop harassing its customers and should serve as a warning to consumers to be wary of fast-money lenders."
For the entire Cailfornia AG press release, see Brown Forces Predatory Lender to End Illegal and Abusive Debt Collection Practices.
For the lawsuit & judgment, see:
(1) Brown contends that CashCall used illegal and abusive debt collection practices when customers were unable to make on-time payments, in violation of California Business and Professions Code Section 17200. These practices included:
- Making excessive and verbally abusive telephone calls at all hours of the day and night;
- Causing borrowers to incur bank fees by repeatedly trying to collect payments despite knowing there were insufficient funds in the borrowers' accounts;
- Threatening to initiate law enforcement and wage garnishment proceedings against borrowers without any basis for doing so;
- Improperly discussing private financial information with borrowers' friends, colleagues and neighbors;
- Failing to honor borrowers' requests to cancel automatic withdrawals from checking accounts; and
- Continuing to contact borrowers by phone after receiving requests to only contact them in writing.
No comments:
Post a Comment