“In one complaint, a customer said he borrowed $10,000 from CashCall 7-1/2 years ago and had been paying $333 a month. He checked his remaining balance and found it was $9,827.33. He had paid out $29,637 on a $10,000 loan and was told he still owed $9,827. So he had paid only $173 in principal in seven years.”
CashCall Inc. – Mortgage Lender Claiming to be Part of Indian Tribe Offers Home Loans at 355 Percent
The name of the company is CashCall Inc./CashCall Mortgage. If that doesn’t set off alarms for you right out of the gate, then I don’t know what would.
First, if you look up the company through the Better Business Bureau, you’ll see it has a C-minus rating, primarily because it’s been sued or faced legal action from various state agencies in California, Florida, New York, Pennsylvania, Maryland, Colorado, Minnesota and a bunch of others.
Among the cases you’ll find:
In August 2013, New York’s attorney general filed suit against CashCall Inc. for violating the state’s usury and licensed lender laws. “The companies charged annual rates of interest from 89 percent to more than 355 percent to thousands of New York consumers,” the BBB says on its web site. “These interest rates far exceed the maximum rate allowed under New York law, which is limited to 16 percent for most lenders not licensed by the state.”
And in December 2013, the Consumer Financial Protection Bureau filed suit against CashCall Inc., saying the company issued loans to consumers but claimed it didn’t have to obey consumer protection laws. The CFPB said CashCall said the funding for the loans was provided by Western Sky, which claimed to be part of an Indian tribe, and that that status would “void any licensing requirements and other consumer protections.”
“The CFPB alleges however, that Western Sky was not in fact part of an Indian Tribe and was actually just a front to allow CashCall to violate state and federal laws,” according to the list of government actions against CashCall. “The CFPB suit seeks to order CashCall to forfeit these loans and award civil money penalties.”
And you can check out the BBB listing here…