A civil lawsuit has been filed by the Arizona Attorney Genera’s Office against CashCall, and its owner, J. Paul Reddam, and a wholly owned subsidiary, WS Funding LLC, for alleged violations of the Arizona Consumer Fraud Act.
The State alleges the defendants participated in a coordinated scheme to market, fund, service, and collect payments on high-interest, illegal loans to Arizona consumers utilizing a sham loan program that disguised the fact that the loans were void under Arizona law and violated Arizona usury laws.
In the complaint, the State alleges that CashCall unlawfully collected millions of dollars from Arizona consumers through its lending scheme, which featured interest ranging from an annual rate of 89% to 169%, greatly exceeding that allowed under Arizona law. Among other things, the State’s complaint seeks restitution for Arizona consumers who were harmed from their participation in the CashCall loan program.