"Orange-based lender CashCall Inc. has reached a settlement with the state in a predatory-lending investigation. The deal announced Thursday calls for CashCall to pay $1 million in penalties and make refunds to harmed consumers. At issue were small consumer loans that CashCall offered for "up to" $2,600, $5,000 or $10,000. The state claimed that CashCall steered consumers into taking loans larger than they needed because there are no interest rate restrictions on loans of $2,500 or more." On the loans at issue, CashCall typically charged annual interest of 135 percent or more, and sometimes up to 179 percent," the state Department of Business Oversight said in a statement announcing the settlement.
Besides the fine, CashCall will pay harmed consumers $125 apiece..This is the latest in a series of enforcement actions against CashCall. Federal regulators filed a lawsuit against the company in 2013, claiming it was using deceptive and abusive practices to collect money that consumers did not owe...."
O.C.-based CashCall fined for predatory lending, will pay refunds- The Big Blog: Orange County Register