ARIZONA NEWS

Company accused of predatory lending in Arizona agrees to pay nearly $5M

Mar 10, 2022, 9:20 AM | Updated: 9:31 am
(Pexels Photo)...
(Pexels Photo)
(Pexels Photo)

PHOENIX – A company accused of predatory lending practices would have to repay Arizonans nearly $5 million under a proposed lawsuit settlement, state officials announced Wednesday.

CashCall, which allegedly charged interest rates up to 169% for personal loans, would pay $4.83 million in restitution as part of a consent judgment in a case brought by the Arizona Attorney General’s Office.

The consent judgment, an agreement between the plaintiff and defendant, was filed last month and is pending approval in Maricopa County Superior Court.

Nearly 11,000 Arizonans were issued loans with interest rates that exceeded state limits under the company’s Western Sky and Slightly-Above-$10,000 Loans programs since 2010, the filing says.

If the deal is approved, the restitution will be deposited into an account to be distributed to eligible consumers and cover claims administrator expenses.

“Our office will not tolerate unscrupulous lenders preying on vulnerable Arizona consumers,” Attorney General Mark Brnovich said in a press release.

“It is always consumer protection week here, and this case is emblematic of our commitment to hold all companies accountable for any deceptive actions or predatory lending practices.”

The state filed its lawsuit against CashCall, which is owned by J. Paul Reddam, and subsidiary WS Funding LLC in March 2019 and amended it in May 2020.

“CashCall and its president, director, and sole owner, Reddam, orchestrated two separate and sophisticated loan programs to skirt Arizona’s lending restrictions,” the state alleges in the consent judgment.

The company also was accused of marketing misleading claims about being affiliated with a Native American tribe in South Dakota.

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Company accused of predatory lending in Arizona agrees to pay nearly $5M