RICHMOND, Va. (Legal Newsline) — Virginia Attorney General Mark R. Herring announced Sept. 6 that his office will deliver checks averaging $982 to consumers victimized by CashCall Inc.’s alleged “rent-a-tribe” predatory lending scheme.
CashCall settled claims that it illegally deceived borrowers and that it charged exorbitant, illegal interest rates of up to 230 percent on online loans. The settlement, filed in the U.S. District Court for the Eastern District of Virginia, amounts to $9.435 million and will be distributed to 9,602 consumers in the state.
"Predatory lenders like CashCall plague the most vulnerable Virginia consumers, those forced to resort to high-interest loans to pay for basic necessities like groceries or rent," Herring said. "Settlements like this send a clear message that my team and I will not allow lenders to deceive, defraud, or abuse Virginians, and we'll hold those accountable that do.
"Borrowers who qualified for the settlement should be on the lookout for their settlement checks and can contact the settlement administrator with any questions."
Handling the case for Virginia were assistant attorney general James Scott and senior assistant attorney general Dave Irvin of Herring's predatory lending unit.