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Written by Jamie Simpson, LawServer Attorney-Editor
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Last Updated October 11, 2008 |
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West Virginia Attorney General Darrell McGraw announced a lawsuit filed this week against California-based CashCall, alleging predatory online lending and illegal collections activity. CashCall is accused of issuing West Virginia residents personal loans with interest rates of up to 99% APR, and subsequently threatening abusive collection practices when the consumers defaulted. The high interest loans were issued through Community State Bank, located in South Dakota, then purchased in full by CashCall three days after funding. CashCall argues that its practices are regulated solely by federal law, and that West Virginia usury laws do not apply because the issuing bank is located in a different state. Attorney General McGraw is asking the court to declare the lending practices illegal and grant restitution to consumers. CashCall is also refusing to comply with the AG office's investigative subpoena.
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