THE CONSUMER FINANCIAL PROTECTION BUREAU (CFPB) HAS RECEIVED A COMPLAINT EVERY 21 HOURS FOR THE
past five years about a single California fintech company, public records show. But that’s far from all
the trouble CashCall and its attorneys are facing.
The 15-year-old Orange, California-based online lending company was ordered by the
Virginia attorney general’s office in January 2017 to pay more than $15 million to consumers
who CashCall allegedly deceived into accepting illegally high interest rates on loans with
annual rates reaching up to 230 percent.
The company signed a $1.5 million settlement with the New York attorney gen-eral in 2014 and paid $1 million in penalties in California in 2009. It has also paid
$40 million to regulators in Georgia and $3 million in Washington, D.C. Still,
the list of state actions citing CashCall’s lending practices goes on. Then, of
course, there’s the $10.3 million the company was ordered to pay in January to the CFPB—a far cry from the $287 million the bureau originally
sought but certainly not pocket change.
After years of fending off legal and
regulatory challenges, in 2017, the
payday lender decided to file a suit of
its own—against its outside lawyers.
BY STEPHANIE FORSHEE
WHEN COMPANIES SUE THEIR OUTSIDE
COUNSEL, IT CAN BE ONE BIG BROUHAHA