New York Lawmakers File Suit Against CashCall Inc.

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In legal action taken on Monday, the New York attorney general’s office filed a lawsuit against California-based lender CashCall Inc., accusing the company of “illegally charging triple-digit interest rates on personal loans.”

According to an article in the Los Angeles Times, the lawsuit alleges that CashCall Inc. “charged as much as 355% in interest, far exceeding New York’s civil and criminal usury limits of 16% and 25%.”

Also named as defendants in the suit are CashCall subsidiary, WS Funding, and Western Sky Financial in South Dakota, as well as their owners, J. Paul Reddam of CashCall and Martin Webb of Western Sky.

“Western Sky and CashCall charged exorbitant interest rates on their loans to scam New Yorkers out of millions of dollars,” New York Attorney General Eric T. Schneiderman said in a statement.

Read more in the Los Angeles Times

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  • Ned Daly

    Can we finally stop calling J. Paul Reddam a “retired college professor” and start calling him a loanshark? One more step towards bringing transparency to horse racing.

  • south florida tom

    I don’t believe the charges at all. J. Paul Reddam and Martin Webb are too smart to think that they can get away with something like this.

  • Glimmerglass

    More in the Wall Street Journal -

    http://online.wsj.com/article/SB10001424127887324769704579009052208997232.html

    >> “A statement provided by an attorney representing Western Sky and Messrs. Webb and Reddam said the company is confident it complied with all applicable laws and that Western Sky’s transactions with borrowers are “governed by the laws of the Cheyenne River Sioux Tribe.” <<

    Effectively claiming they can circumvent NY State laws because the company is within an Indian Nation? Good luck with that.

    • Hoops and Horses

      And you wonder WHY Churchill Downs excluded the Cash Call Futurity from the points for the KY Derby? This above now causes the other to make more sense.

      • MA

        ‘Cause Churchill isn’t greedy or anything…

  • 4Bellwether666

    Ca$h Call makes the mob rate look good!!!…

  • Cconcerned Observer

    Naaaah. This just the free enterprise system at its best, and you-all want to put laws and government in the way of…….making money. The real test is….if you don’t use a gun….it is legal!

  • Richard C

    The mob had better rates and – at least – was locally owned and operated. I have seen signs at area joints advertising short-term loans for vehicle titles as collateral…..preying on desperate people in desperate times who will essentially sign away everything they own to stay afloat — but they simply delay sinking and – many times – pull in family and/or friends to bail them out of the financial mess.

    • nu-fan

      Richard: So much has been in the press about the banks and others who provided loans to those who could not pay. But, at the heart of this, also, is the realization that too many people are so poorly educated about personal finance as well as some who want everything NOW regardless of whether they will be able to repay their loan obligations at some future date. Too many homes–but not all–that were repossessed had expensive cars, boats, and other expensive toys in their driveways. Then, there were those who drove older cars, lived in moderately priced homes, etc., and they have been able to ride out this very lengthy downturn in the economy. I still, however, fault the banks and credit card issuers for not being more conservative to whom they issued these loans.

      • Cconcerned Observer

        Real men do not steal from the Salvation Army kettle. Real businessmen do not target only the poorly informed, helpless or desperate. It is all about ethics. A man does not need a law to know right from wrong.

        • Lost In The Fog

          Well said. I have absolutely no respect for Reddam. He has amassed a huge fortune by preying on the poor, helpless and needy.

          • nu-fan

            I never quite forgave Reddam for selling I’ll Have Another to the highest bidder–for $10 million dollars. Some will say that is commerce but did Harry Aleo sell Lost In The Fog when he could have–and, for big bucks? No. Who could I respect more? I think you know the answer to that one.

      • Lost In The Fog

        In many cases the banks who made the initial loans simply didn’t care whether the borrower had the ability to repay the loan. it was not even a consideration. The scam was that the banks were only interested in processing as many loans as possible to collect the processing fees then they immediately sold off the loans to others, knowing full well that a large percentage of the borrowers would default. They didn’t care because they knew they would profit from the processing fees and that they wouldn’t be left holding the loans they were making.

        • nu-fan

          You’re right. They did sell of those loans to others and left them holding the worthless bag. But, I also believe that too many of our society do not assume enough self-responsibility for their own actions. Too many other people did not fall prey to these scammers. From what I see, there are an increasing number of people who assume too much and that someone else will take care of them–that is a “weakened” society.

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