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  • Report: #1029972

Complaint Review: Cash Call

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  • Submitted: Fri, November 21, 2008
  • Updated: Tue, March 31, 2009

  • Reported By:Youngstown Ohio
Cash Call
www.cashcall.com Nationwide U.S.A.
  • Phone:
  • Web:
  • Category: Loans

Cash Call Cash Call, scam, interest rates Anaheim Nationwide

*Consumer Suggestion: Failure in CashCall's business model

*Consumer Comment: My loan was written through First Bank of Delaware also

*Consumer Suggestion: WV vs Cash Call

*UPDATE EX-employee responds: STATE OF WEST VIRGINIA SUES CASHCALL...

*Consumer Comment: STATE OF WEST VIRGINIA SUES CASHCALL (CONTACT YOUR ATTORNEY GENERAL) THIS IS JUST THE BEGINING!

*Consumer Suggestion: Incorrect Laurie

*Consumer Comment: The high interest rate is not a secret - its on every cashcall commercial I have ever seen

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Ok, here's the deal. I almost went through with the whole Cash Call process. Then, when I did the search for their site, this site came up so I figured I'd read a couple reports to see what was going on. At first I was shocked. I mean, people being charged 99% interest rates? Sounds unbelievable, right?

That's when I decided to do a little digging myself. I went online to the Cash Call site and checked out their terms. The site indicated that because I was a resident of Ohio, the loan would be underwritten by the First Bank of Delaware out of Philadelphia, PA. It did state (in bold letters) that residents of California, Idaho, New Mexico and Utah would have their loans underwritten and funded by Cash Call themselves. All other states (like Ohio) are with the First Bank of Delaware.

Sounded promising, since most of the complaints on here are in fact from California. So, since no where in the terms were there rates listed, I got very curious, and found that on their home page at the top, they have a tab entitled "rates". I clicked on it and a drop down box came up asking for my state. Now, the default state was CA, and it clearly listed the following: if you take out a $2,600 loan, there is a $75 application fee, which takes your actual cash in hand down to $2,525.

APR is listed as 99.25% with a total of 42 payments in the amount of $216.55. So, I punched in my state and lo and behold, the First Bank of Delaware was charging the exact same rates as those loans funded by Cash Call. Now, being a decently prudent person, I then decided that obviously this was not the place to get a loan.

My point is, I totally understand what many of you are saying. You needed money fast, they offered you money no questions asked. You took it. You didn't read any fine print and now you're paying astronomical rates and your loan amount is just doubling every month. I feel for you, I really do. I've been sucked into many a scam before. But where is the line between desperate and dumb? Even before I got sucked into the scams I've been into, I read all the fine print and the only reason I got sucked in was because I was just too stupid and young to realize any consequences. But looking back, I knew up front that I was being screwed out of my last penny.

Yes, Cash Call is a bad organization and I honestly don't understand how they're still operating legally with the rates they choose. Yes, their customer service is probably horrible, every decent sized company's customer service is horrible. Have you tried finding one agent who actually knew how to pronounce the last name Smith? Not likely, and that's sad.

The point to all of this is that I want all of you out there to please, please listen to me and be smart about the financial decisions you make. No matter how desperate you are, read everything! Know what you're getting into! If you're having trouble with medical bills, research your hospital's assistance programs first! Most of them allow your income to be up to 200% of the poverty level in your state, and they allow extra cash for the number of people living in your home. In most cases, you can make up to $3,000-$4,000/month with a family of 4 and still get assistance. Surprising?

If you're head over heels in credit card debt, there's a multitude of different agencies who will not only give you a free, no obligation consultation, but will work to reduce the amounts you owe and consolidate them into an affordable monthly payment.

And then there's also bankruptcy. Don't give bankruptcy the stigma that it's had for all these years. Not only can you possibly qualify for the Chapter 7, once it's discharged, it only stays on your record for 2 years now instead of 7 and most credit card companies (should you really need one again) don't care! They see you have no debt and alot of free income.

To all the people out there actually reading this: do NOT go to Cash Call, at any cost. They're out to make money, and boy are they making a lot of it.

If anyone has anything to add to this or if you want to rebut my report for some reason, please feel free to do so. I'm not always right. I just don't like seeing innocent people being taken advantage of. Be smart. Read everything. If it sounds wonderful, it isn't. If it has an annual fee or application fee, it isn't worth it. If you see it on TV, chances are it's a scam anyway. If you can't get a credit card or line of credit, pay cash. These tough economic times are bad enough without 99% interest rates.

To all those sadly affected by Cash Call or any other predatory lender, I am so sorry for you. You all will be in my thoughts and prayers in the coming weeks and I hope you all have a pleasant and blessed holiday season.

Mrssloan819
Youngstown, Ohio
U.S.A.

This report was posted on Ripoff Report on 11/21/2008 02:32 AM and is a permanent record located here: http://www.ripoffreport.com/r/Cash-Call/nationwide/Cash-Call-Cash-Call-scam-interest-rates-Anaheim-Nationwide-1029972. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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REBUTTALS & REPLIES:
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Updates & Rebuttals

#1 Consumer Suggestion

Failure in CashCall's business model

AUTHOR: Chris - (U.S.A.)

http://www.wvsd.uscourts.gov/district/opinions/pdf/WVvCashcall.pdf

The previous link is the pdf of the initial outcome of the WV AG filing suit against Cashcall. Cashcall countered and attempted to move the suit to the Federal Court level and dismiss the suit because Cashcall and WV countered that the suit was vaild as Cashcall was attempting to "side step" the laws of the State of WV.

In a very brief rap up of what the document states is

1) Cashcall motion to dismiss was denied
2) Cashcall is not a bank therefore cannot hide behind the protections provided by the Federal Law protecting exported loans.
3) WV motion to remand (back to state court) is granted


Please remember that their are numerous districts in the Federal Court level and judgements made in one are not immediately valid in another. I suggest contact your states AG office on informing them of the decision followed by your own attourney.
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#2 Consumer Comment

My loan was written through First Bank of Delaware also

AUTHOR: Kathryn - (U.S.A.)

I live in Georgia and my loan was also written through The First Bank of Delaware but my interest rate was only 48%. I had to pay a 75.00 application fee and 12 payments of 159.00. My originial loan amount was 1500.00 . I just paid my last payment this month. I was never late and never had a problem out of these people. I think the only people that are complaining are the ones that borrow and feel like the world owes them something and expect a free ride.
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#3 Consumer Suggestion

WV vs Cash Call

AUTHOR: Chris - (U.S.A.)

As someone who has a loan with Cash Call and lives in West Virginia I am happy that the suit was file. I am hoping that some of my complaints to the AG office actually helped in some way. As I have told many employees of Cash Call and the AG Office, I never dealt with anyone other than Cash Call when I applied for the loan and Cash Call even sent out a nice little "postcard" after the loan approval.

These are the facts of my case and your may vary but I'm hoping that they help:

1) I have not talked with any other loan officer but Cash Call's and all information was either entere via the Cash Call site or by calling Cash Call.
2) I was informed that after a period of time the loan could be refinanced at a lower rate.
3) I made a total of 20 payments totaling $4400 and the total financed was $2600.
4) Cash Call sends emails mostly and in my case the initial mailing was the only one received.
5) Upon learning that WV AG filed suit I moved all my items to my secondary bank and closed the original bank.
6) After informing Cash Call about the bank account closing they then proceed on 4 different dates and times to attempt to withdraw money on the closed account.
7) I was offered a "loan adjustment" but did not accept for three reasons:
a) A Cash Call Rep was suppose to call me back on a specific day and time range but did not
b) After reading the agreement I noticed that they had included a "poison pill" provision which would reset the loan back to the original amount.
c) With the lawsuit file I really did not want to lock myself into a deal that would prevent a closure. In other words, I don't want to exclude myself from a deal because I accepted a seperate deal on my own.


I advise the following when dealing with Cash Call:

1) Always be polite and respectful to the other person on the phone.
2) When you hear the "beep" inquire as to what that noise is
a) It is the recording of the phone call in case you don't know
b) Inquire as to length that the recordings are kept
3) Have the CC Rep say the 2 previous contact people with dates and time
a) Balances
b) Payment History
c) Anything Else you may find useful
d) Ask for the empolyee's name once again
i) I am also going to start asking for their Employee ID to identify them even further or something unique so that I can identify the person I talked to beside a first name.
4) Take notes, more notes, and even more notes.

Cash Call has tried to "thread the needle" with the fine print but I don't care what it states all my dealing were with Cash Call. Even the "loan was financed" was generated by Cash Call. It really, really helps if they stop issuing loans in your state.
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#4 UPDATE EX-employee responds

STATE OF WEST VIRGINIA SUES CASHCALL...

AUTHOR: Jimo - (U.S.A.)

Its good that this is an anonymous forum because stating that a company is practicing 'predatory' lending practices without evidence or proof could not only be considered slander but also result in legal action being taken against you. This company is in fact NOT practicing 'predatory' lending but whats worse it the fact that its customers are practicing whats commonly known as 'stupidity' in times of desperation.
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#5 Consumer Comment

STATE OF WEST VIRGINIA SUES CASHCALL (CONTACT YOUR ATTORNEY GENERAL) THIS IS JUST THE BEGINING!

AUTHOR: Jd - (U.S.A.)

STATE OF WEST VIRGINIA
OFFICE OF THE ATTORNEY GENERAL
DARRELL V. MCGRAW, JR.
CONSUMER PROTECTION DIVISION
1-800-368-8808 or 304-558-8986

Press Release
FOR IMMEDIATE RELEASE

Contact: Normal Googel
Phone: (800) 368-8808


Release Date: October 8, 2008
Attorney General McGraw Sues California-based Internet Lender for "Sham" to Avoid State Regulations In Predatory Loans


Attorney General Darrell McGraw saw the irony, but not the humor, in CashCall's national ads featuring one-time child star, Gary Coleman, of the popular television show, "Diff'rent Strokes," exclaiming enthusiastically, "I love you CashCall" and "CashCall you're awesome."

Today, McGraw's office sued the California-based Internet lender for pushing predatory loans with interest rates of up to 99% APR on West Virginia consumers least able to afford them. When consumers inevitably defaulted, CashCall unleashed a barrage of collection abuse and harassment, including threats to visit consumers at their place of employment and charge them fees for the trip according to numerous complaints filed with the Attorney General.

"CashCall created a business model intended to fly under the protective radar of West Virginia laws that set limits on interest rates to protect consumers from financial calamity. It is these kinds of unregulated lending practices that have brought West Virginia consumers and the nation to a financial precipice. Today, my office has drawn a line in the sand in an effort to fill the void left by lax or non-existent federal regulation to protect our consumers from financial predators," Attorney General McGraw said.

The complaint filed by McGraw's office today alleges that CashCall solicited consumers to take out high interest loans from Community State Bank, a state-chartered bank in Millbank, South Dakota. CashCall contends that because the bank is located in South Dakota, West Virginia's usury laws do not apply. Despite the paperwork listing the bank as the lender, CashCall does all the heavy lifting and, in fact, appears to assume the actual risk of the loans, which CashCall repurchases in full from the bank three days after the loans are funded.

In addition to asking the court to find that CashCall's loans are illegal and to provide all aggrieved consumers with restitution, the suit asks that CashCall comply with the Attorney General's investigative subpoena. In response to the Attorney General's investigation, CashCall asserted that its business practices are exclusively regulated by federal law. CashCall also argued that the Attorney General is prohibited from even investigating the facts underlying CashCall's assertion that it is beyond state regulation.

Any persons wishing to file a complaint about a consumer matter or to alert the Attorney General about unfair or deceptive practices may do so by calling the Consumer Protection Hot Line, 1-800-368-8808, or by obtaining a complaint form from the consumer web page at www.wvago.gov.
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#6 Consumer Suggestion

Incorrect Laurie

AUTHOR: Robert - (U.S.A.)

""What most people do not realize is the minimum montly payment goes to pay interest and very little to the actual loan balance.""

Not entirely correct. The loan balance is AMORTIZED. It is true that in the BEGINNING of the repayment period almost all of the scheduled payment is for interest (with a very small portion going against the principal.) However, as the long matures a larger portion of the scheduled payment goes against the balance and less towards interest until the point that almost all of the scheduled payment is towards the balance.

This same amortization process applies to most consumer credit such as loans from cash call, auto loans, signature loans, etc.

""So they ASSUME that they are paying down the balance when they are not. ""

INCORRECT. All on time scheduled payments DO have a PORTION of the scheduled payment applied to the remaining principal. CC sets up these ridiculous loans to be paid in 3.5 years and their advertised interest rates and number of payments bears this out when checked with an amortizing calculator.

""You have to make more than the minimum payment required to pay down the balance,""

ABSOLUTELY FALSE! Check it yourself-there are many amortizing calculators available on line. The interest rate and payment schedule that CC advertises DO work out.

What gets folks in trouble with a CC loan is the ridiculous high interest rate combined with either MISSING a payment or making a LATE payment. Then, it's "the march of the fees" added ON TOP of the ADDITIONAL INTEREST that is applied and added to the remaining balance. In many cases, missing a payment or two, even after a YEAR of making scheduled payments on time can cause the remaining balance to mushroom to MORE than the original amount borrowed. This is because of the 99.25% APR and late fees.

If someone gets a loan from CC and makes ALL SCHEDULED PAYMENTS ON TIME the loan contract is fulfilled in 3.5 years (42 monthly payments) as they advertise.
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#7 Consumer Comment

The high interest rate is not a secret - its on every cashcall commercial I have ever seen

AUTHOR: Laurie - (U.S.A.)

Granted it is in small print, but it is posted on their commercials.

What most people do not realize is the minimum montly payment goes to pay interest and very little to the actual loan balance. So they ASSUME that they are paying down the balance when they are not.

You have to make more than the minimum payment required to pay down the balance, the faster you lower the balance - the less overall interest you end up paying.
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