Brian Damage
06-18-2012, 12:11 AM
J. Paul Reddam, whose 3-year-old colt I’ll Have Another almost won the Triple Crown in horse racing, also owns the lending company, Cash Call.
Reddam marketed his loans aggressively. At one point, Gary Coleman, the former star of “Diff’rent Strokes,” went to CashCall for a $10,000 loan. Reddam promptly signed Coleman up to do television advertisements.
Coleman, who died in 2010, told viewers: “No one else would lend me money, not even my relatives. CashCall — you’re awesome.”
CashCall offers quick to approve, unsecured loans from $2,600 to $25,000 at annual percentage rates ranging from 35.87 percent to 184.36 percent. In 2009, CashCall added mortgages, which make up the bulk of the company’s business.
CashCall in recent years has run afoul of regulators in California, West Virginia and Maryland, who have charged it with a variety of harassing tactics: continual phone calls demanding payment; disclosing borrowers’ debts to third parties, including employers; charging usurious rates; accusing borrowers of fraud; and verbally abusing borrowers. A lawsuit filed in 2009 by California resulted in CashCall’s paying $1 million.
Maryland and West Virginia have accused CashCall of violating state laws that cap interest rates by using out-of-state banks to originate the loans then quickly purchasing the loans. Maryland has proposed a fine of $5.7 million, which is pending, and in a separate action, revoked CashCall’s mortgage lending license.
http://www.nytimes.com/2012/06/06/sports/belmont-stakes-ill-have-anothers-owner-is-one-win-from-triple-crown.html?pagewanted=all
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Reddam marketed his loans aggressively. At one point, Gary Coleman, the former star of “Diff’rent Strokes,” went to CashCall for a $10,000 loan. Reddam promptly signed Coleman up to do television advertisements.
Coleman, who died in 2010, told viewers: “No one else would lend me money, not even my relatives. CashCall — you’re awesome.”
CashCall offers quick to approve, unsecured loans from $2,600 to $25,000 at annual percentage rates ranging from 35.87 percent to 184.36 percent. In 2009, CashCall added mortgages, which make up the bulk of the company’s business.
CashCall in recent years has run afoul of regulators in California, West Virginia and Maryland, who have charged it with a variety of harassing tactics: continual phone calls demanding payment; disclosing borrowers’ debts to third parties, including employers; charging usurious rates; accusing borrowers of fraud; and verbally abusing borrowers. A lawsuit filed in 2009 by California resulted in CashCall’s paying $1 million.
Maryland and West Virginia have accused CashCall of violating state laws that cap interest rates by using out-of-state banks to originate the loans then quickly purchasing the loans. Maryland has proposed a fine of $5.7 million, which is pending, and in a separate action, revoked CashCall’s mortgage lending license.
http://www.nytimes.com/2012/06/06/sports/belmont-stakes-ill-have-anothers-owner-is-one-win-from-triple-crown.html?pagewanted=all
JJMS5OrdAcg