US regulators accuse online lender of collecting money consumers didn’t owe, company protests

The Associated Press 0

WASHINGTON – Federal regulators have sued online lender CashCall Inc., its owner and two related companies, accusing them of collecting money that consumers didn’t owe.

The Consumer Financial Protection Bureau alleged in its suit filed Monday that CashCall made loans that violated licensing rules, interest-rate caps or both in at least eight states.

The Anaheim, Calif.-based company disputes the allegations and plans to fight them in court. Through its lawyers, CashCall says the CFPB exceeded its congressional mandate by attempting to cap interest rates.

CashCall, its subsidiary WS Funding and collection agency Delbert Services Corp. are owned by J. Paul Reddam, a philosophy professor-turned-businessman who gained fame last year when his horse, I’ll Have Another, won the Kentucky Derby and the Preakness Stakes.

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