CFPB Action Against Lender CashCall Unrelated to Auto Business
Earlier today, the Consumer Financial Protection Bureau announced a lawsuit against CashCall for allegedly “unfair, deceptive, and abusive” lending tactics. Auto Finance News has confirmed with the CFPB that the allegations are unrelated to CashCall’s nascent auto lending business.
“The CFPB’s lawsuit filed today only relates to CashCall’s servicing of online installment loans,” wrote CFPB spokesman Sam Gilford in an email.
The CFPB took action against CashCall for illegal online loan servicing, according to a news release. The agency is seeking monetary relief, damages and civil penalties. This is the first action the CFPB has taken against an online lender.
CashCall announced in October that it would start issuing auto loans as a means to diversify its mortgage business.
“The auto loan product supports the company’s customer-centric and technologically innovative approach to lending,” Vice President Louis Ochoa told Auto Finance News at the time. “The product launch is the latest in a series of corporate initiatives focusing on leadership in consumer lending.”
To start, Anaheim, Calif.-based CashCall has been originating loans in the California market, with plans to expand nationwide. It makes loans as high as $25,000 to consumers with credit scores higher than 475.
