• Report: #237440

Complaint Review: CashCall.com. Cash Call, First Bank Of Delaware, First Bank & Trust, Milbank, Paul Reddam

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  • Submitted: Wed, February 28, 2007
  • Updated: Thu, March 01, 2007

  • Reported By:Chicago Illinois
CashCall.com. Cash Call, First Bank Of Delaware, First Bank & Trust, Milbank, Paul Reddam
17360 Brookhurst Street Fountain Valley, California U.S.A.
  • Phone: 866-590-2274
  • Web:
  • Category: Loans

CashCall.com. Cash Call, First Bank Of Delaware, First Bank & Trust, Milbank, Paul Reddam Wanted to charge me 99.25% annual interest for a loan! Yes, 99.25%!!! THE MAFIA IS CHEAPER! Fountain Valley,California

*Consumer Comment: Mafia is actually worse.

*Consumer Comment: Mafia is actually worse.

*Consumer Comment: Mafia is actually worse.

*Consumer Comment: Mafia is actually worse.

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I called CashCall and talked to a representative. He was a nice guy, but after I found out how much they want for their loans, they better be super nice to get you as a customer.

This is what I was offered below:

$2,600 Loan
Rate: 96%
APR: 99.25%
Number of Payments: 42
Payment amount: $216.55

This is NOT a misprint. 99.25% interest PER YEAR!

The total payments after the 42 months would be $9,095.10!!! Who in their right mind would pay almost $10,000 for a $2,600 loan???

From what I understand, CashCall also has the audacity to charge a $75 origination fee that is built in the loan amount. This means you end up getting $2,525 in cash, but pay that exorbitant interest rate on the full amount of $2,600.

Even Tony Soprano can lend me money at "one and a half points per week" (as they say in the show), which ends up with an APR of 78%. This is called "Usury" in legal terms and is punishable with prison time.

How can CashCall offer an annual percentage rate higher than the mafia and not face jail time???

What's next? In the terms and conditions it will state that if you miss a payment someone from CashCall comes over and breaks your legs? They should change their name to CashCapone.

I found the below information on another website - do the math with the dollar amount below and the outrageous interest rate CashCall charges:

"Established in July 2003, CashCall is based in Fountain Valley, Calif. The privately held company offers loans to consumers in more than 46 states and its loan portfolio consists of approximately 119,000 loans for $435 million. More information about CashCall can be found at www.cashcall.com."

By the way, the founder and president of CashCall is J. Paul Reddam (lives in CA, but originally from Windsor, Ontario, Canada). He also started Ditech.com and later sold it to General Motors. He resigned as CEO in May 1999 when 3 top managers were charged with extortion. This is after legal issues of over billing customers, over charging interest and misleading consumers in its ads. His previous company, SC Funding, had its license revoked by the State of California.

Wait...I see...a BIG RED FLAG.

Hmmm...do you really want to do business with someone like this? Man, if Soprano and his droogs got wind of this, they would have a heyday with these guys!

Shame on you Paul. You should go to prison.

Hoover
Chicago, Illinois
U.S.A.

This report was posted on Ripoff Report on 02/28/2007 03:35 PM and is a permanent record located here: http://www.ripoffreport.com/r/CashCallcom-Cash-Call-First-Bank-Of-Delaware-First-Bank-Trust-Milbank-Paul-Reddam/Fountain-Valley-California-92708/CashCallcom-Cash-Call-First-Bank-Of-Delaware-First-Bank-Trust-Milbank-Paul-Reddam-237440. 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.

Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report.

Click Here to read other Ripoff Reports on CashCall.com. Cash Call, First Bank Of Delaware, First Bank & Trust, Milbank, Paul Reddam

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Updates & Rebuttals

#1 Consumer Comment

Mafia is actually worse.

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

Assuming the Mafia knows about compounding, a 1.5% vig on a weekly basis would actually be a 117% APR. Plus they can break your legs rather than make nasty phone calls.

Cashcall loans are only useful for people who have very bad credit (but a job and a checking account) and have run out of alternatives. For anyone else, it would be a "rip-off", because they could find a much better rate. The only exception might be if one used a credit card cash advance (3% fee) AND had a APR on the card above 20% AND paid if off in less than 3 weeks. (numbers aside, I'd still do the Credit card).

you ask: "How can CashCall offer an annual percentage rate higher than the mafia and not face jail time???"
Many usury limits were raised in order to allow people to not have to resort to kneecap breaking loan sharks.
National Banks can effectively export their usury laws for loans funded by them to states without strong usury laws. For most states, cashcall's loans are funded by a bank located in South Dakota or Delaware, where usury limits are high.
If you want to find a state (like NY & MA) that has strict laws agains high rates, just look where cashcall does NOT make loans.

By the way, payday loans can have APRs that are above 400%, yet do not violate state usury laws. These types of loans are usually highly regulated by states. For a short-term emergency, a small payday loan that isn't renewed can be better than either cashcall or a credit card advance.
Respond to this report!
What's this?

#2 Consumer Comment

Mafia is actually worse.

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

Assuming the Mafia knows about compounding, a 1.5% vig on a weekly basis would actually be a 117% APR. Plus they can break your legs rather than make nasty phone calls.

Cashcall loans are only useful for people who have very bad credit (but a job and a checking account) and have run out of alternatives. For anyone else, it would be a "rip-off", because they could find a much better rate. The only exception might be if one used a credit card cash advance (3% fee) AND had a APR on the card above 20% AND paid if off in less than 3 weeks. (numbers aside, I'd still do the Credit card).

you ask: "How can CashCall offer an annual percentage rate higher than the mafia and not face jail time???"
Many usury limits were raised in order to allow people to not have to resort to kneecap breaking loan sharks.
National Banks can effectively export their usury laws for loans funded by them to states without strong usury laws. For most states, cashcall's loans are funded by a bank located in South Dakota or Delaware, where usury limits are high.
If you want to find a state (like NY & MA) that has strict laws agains high rates, just look where cashcall does NOT make loans.

By the way, payday loans can have APRs that are above 400%, yet do not violate state usury laws. These types of loans are usually highly regulated by states. For a short-term emergency, a small payday loan that isn't renewed can be better than either cashcall or a credit card advance.
Respond to this report!
What's this?

#3 Consumer Comment

Mafia is actually worse.

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

Assuming the Mafia knows about compounding, a 1.5% vig on a weekly basis would actually be a 117% APR. Plus they can break your legs rather than make nasty phone calls.

Cashcall loans are only useful for people who have very bad credit (but a job and a checking account) and have run out of alternatives. For anyone else, it would be a "rip-off", because they could find a much better rate. The only exception might be if one used a credit card cash advance (3% fee) AND had a APR on the card above 20% AND paid if off in less than 3 weeks. (numbers aside, I'd still do the Credit card).

you ask: "How can CashCall offer an annual percentage rate higher than the mafia and not face jail time???"
Many usury limits were raised in order to allow people to not have to resort to kneecap breaking loan sharks.
National Banks can effectively export their usury laws for loans funded by them to states without strong usury laws. For most states, cashcall's loans are funded by a bank located in South Dakota or Delaware, where usury limits are high.
If you want to find a state (like NY & MA) that has strict laws agains high rates, just look where cashcall does NOT make loans.

By the way, payday loans can have APRs that are above 400%, yet do not violate state usury laws. These types of loans are usually highly regulated by states. For a short-term emergency, a small payday loan that isn't renewed can be better than either cashcall or a credit card advance.
Respond to this report!
What's this?

#4 Consumer Comment

Mafia is actually worse.

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

Assuming the Mafia knows about compounding, a 1.5% vig on a weekly basis would actually be a 117% APR. Plus they can break your legs rather than make nasty phone calls.

Cashcall loans are only useful for people who have very bad credit (but a job and a checking account) and have run out of alternatives. For anyone else, it would be a "rip-off", because they could find a much better rate. The only exception might be if one used a credit card cash advance (3% fee) AND had a APR on the card above 20% AND paid if off in less than 3 weeks. (numbers aside, I'd still do the Credit card).

you ask: "How can CashCall offer an annual percentage rate higher than the mafia and not face jail time???"
Many usury limits were raised in order to allow people to not have to resort to kneecap breaking loan sharks.
National Banks can effectively export their usury laws for loans funded by them to states without strong usury laws. For most states, cashcall's loans are funded by a bank located in South Dakota or Delaware, where usury limits are high.
If you want to find a state (like NY & MA) that has strict laws agains high rates, just look where cashcall does NOT make loans.

By the way, payday loans can have APRs that are above 400%, yet do not violate state usury laws. These types of loans are usually highly regulated by states. For a short-term emergency, a small payday loan that isn't renewed can be better than either cashcall or a credit card advance.
Respond to this report!
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