RICHMOND, Va. (Legal Newsline) — Consumers in Virginia will receive $15.33 million in restitution and debt relief as part of a settlement with CashCall Inc. and its president and CEO Paul Reddam.

CashCall, which offered online loans, and Reddam allegedly deceived borrowers and charged high interest rates of up to 230%.

 

"Online lenders are quickly becoming a new source of high-interest, financially risky loans," Attorney General Mark R. Herring said. "Unfortunately, like payday and car title loans before them, these small dollar loans issued online often come with exorbitant interest and fees that can trap a borrower in a cycle of debt. This is the largest settlement my Predatory Lending Unit has secured against an online lender.

"I'm glad we're going to be able to get some relief to consumers who were harmed and I hope this settlement sends a clear message that we will not allow lenders to deceive, defraud, or illegally abuse Virginians."

 

Assistant Attorney General James Scott and Senior Assistant Attorney general Dave Irvin of Attorney General Herring's Predatory Lending Unit handled the case for Virginia.

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