CashCall Inc., an Anaheim, California-based lender, and its chief executive officer, J. Paul Reddam, were sued for alleged abusive practices by the U.S. Consumer Financial Protection Bureau and state of Colorado, Bloomberg News reported yesterday. CashCall, which on its website says it’s “one of the nation’s premier lenders,” collected money it had no right to take from consumers, CFPB Director Richard Cordray said. “The CFPB alleges that the defendants engaged in unfair, deceptive, and abusive practices, including illegally debiting consumer checking accounts for loans that were void,” Cordray said. Minutes before Cordray’s statement was released, Colorado Attorney General John W. Suthers said CashCall, founded in 2003, is illegally operating in that state by servicing and collecting on “predatory” loans.
