CashCall, which the state says operates its "main licensed office" in the Southern California city of Orange, is known for its splashy media advertisements. In some ads, the company acknowledges that its loans can be expensive but touts the immediate availability of cash.
However, the state charges that CashCall's personal loan origination and servicing activities violate the California Finance Lenders Law.
The oversight department's formal complaint alleges that CashCall made misleading representations and omitted material information in its sales pitches in order to lure consumers into borrowing more than they needed or were seeking. The state also noted that CashCall routinely charged annual interest rates of 135 percent or more on personal loans.
The complaint cites problems with numerous loans, dating back to 2008, and asks for CashCall licenses to be suspended for up to 12 months.
Attempts to reach CashCall for comment were unsuccessful.
The DBO complaint says it began a regulatory examination of the books and records of CashCall in late 2010. It contends that CashCall "routinely advertised on television and radio that it made personal loans up to
The state regulates interest rates on loans less than
"The department upholds the state's financial laws to protect consumers from unfair and deceptive lending tactics. CashCall's predatory marketing and personal lending practices will not be tolerated in
The DBO oversees the operations of state-licensed financial institutions, including banks, credit unions and money transmitters.
The online lender has been in hot water with
In 2009, it was slapped with a court order to pay a
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