In December 2013, the CFPB sued CashCall and its subsidiaries for “engaging in ‘unfair, deceptive, and abusive practices,’ including illegally debiting borrower accounts for loans that were, in fact, void and violating ‘federal law by seeking to collect on loans that were completely void or partially nullified.'” As of February 2017, the case was ongoing; however, “the lawsuit seeks a court order that would require CashCall to refund money that was unlawfully collected from borrowers, plus additional penalties, and an order requiring CashCall to follow all laws in collecting loans from consumers.”

• The CFPB filed a lawsuit against CashCall, Inc., WS Funding, LLC, Delbert Services Corporation, and J. Paul Reddam in US District Court District of Massachusetts. The suit is still ongoing. [CFPB v. CashCall, Inc., WS Funding, LLC, Delbert Services Corporation, and J. Paul Reddam, case no. 1:13-cv-13167, filed 12/16/13]

• The CFPB sued CashCall Inc., an online service provider, for “engaging in ‘unfair, deceptive, and abusive practices,’ including illegally debiting borrower accounts for loans that were, in fact, void.” The CFPB claimed the companies “violated federal law by seeking to collect on loans that were completely void or partially nullified because the loans violated either state caps on interest rates or state licensing requirement laws.”

The CFPB alleged that CashCall provided “high cost, ‘small dollar’ loans” sometimes with “triple-digit interest rates,” which are illegal in many states meaning “the company had no right to collect payment in those states.” The loans “ranged from $850 to $10,000, and typically had upfront fees, lengthy repayment terms and annual interest rates ranging from about 90 percent to 343 percent.”

In North Carolina, a woman allegedly “borrowed $2,600 and paid $4,000 over 14 months, but discovered she still owed more than $2,500 on her principal balance.”

The CFPB claimed “CashCall’s affiliate, WS Funding, financed hundred of thousands of loans from 2010 to 2013.” The CFPB claimed CashCall “violated laws setting caps on interest rates, or requiring financial companies to be licensed, or both, in at least eight states, including Arizona, Arkansas, Colorado, Indiana, Massachusetts, New Hampshire, New York and North Carolina.” [Ann Carrns, “Federal Consumer Agency Sues Over Online Loans,” The New York Times, 12/16/13]

• “The lawsuit seeks a court order that would require CashCall to refund money that was unlawfully collected from borrowers, plus additional penalties, and an order requiring CashCall to follow all laws in collecting loans from consumers.” [Stuart Pfeifer, “Regulators accuse Cash Call of improperly collecting from borrowers,” Los Angeles Times, 12/16/13]