The California Department of Business Oversight announced Friday that it will seek to suspend the licenses of fast money lender CashCall for alleged violations of state lending laws.
Anaheim-based CashCall is known for its splashy media advertisements. In some ads, the company acknowledges that its loans can be expensive but touts the immediate availability of cash.
However, DBO charges that CashCall's personal loan origination and servicing activities violate the California Finance Lenders Law.
A formal complaint alleges that CashCall made misleading representations and omitted material information in its sales pitches in order to lure consumers into taking out loans in amounts greater than what consumers needed or were seeking. DBO also noted that CashCall routinely charged annual interest rates of 135 percent or more on personal loans.
CashCall did not immediately respond to requests for comment.
"The department upholds the state's financial laws to protect consumers from unfair and deceptive lending tactics. CashCall's predatory marketing and personal lending practices will not be tolerated in California," said Jan Lynn Owen, commissioner of Business Oversight.