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:
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.