Monday, October 31, 2011

Hearing Against Internet Loan Company Held

{Charleston, West Virginia}...Kanawha Circuit Judge Duke Bloom began hearing witnesses Monday during a bench trial of the 2008 lawsuit the West Virginia Attorney General's office filed against Internet loan company California-based CashCall. The attorney general's consumer protection division alleges the online lender charged huge interest rates to state residents and then bombarded them with harassing phone calls once they fell behind on payments. Borrowers testified that CashCall automatically withdrew amounts monthly from their bank accounts despite an insufficient balance. A lawyer for CashCall reminded several of Monday's witnesses of the terms they agreed to when they applied for their loans. The company, which became known through TV ads featuring the late former child actor Gary Coleman, works with a bank in South Dakota, and says it follows the relevant laws in that state.