Bill, regarding a Cash Call loan. Long story short, I got myself into some serious financial problems with gambling. I had a Cash Call loan that was never confirmed with a payment. The Loan was made in June 2006. I have one by one been settling my debt issues, but it has taken some time to do so, and I now have a judgment with Capital One, and this Cash Call loan. Cash Call has now come calling (through what appears to be a company that has purchased the debt)I had no collection known to me through the original company (Cash Call) and received notification in December 2009 that this collection agency was now coming after me. I expect that Capital One will be enforcing a bank levy at any moment and that entire process (judgment action) without my even knowing it had as I was out of the state when they did it. Is there any protection in the Cash Call loan for me in that I never confirmed the debt with a payment. What is your recommendation?
You borrowed an undisclosed amount of money from CashCall in 2006 and you never made a payment. A collection agent is now attempting to collect the loan. On an unrelated matter, you have a pending judgment on a Capital One account.
|CFPB Sues CashCall|
| In December 2013, the federal Consumer Financial Protection Bureau (CFPB) filed lawsuits against CashCall and its two subsidiaries Western Sky Financial and Delbert Services Corp. for unfair, deceptive, and abusive practices, including illegally debiting consumer checking accounts for loans that were void. |
See the Bills.com article Need to Repay Cash Call or Western Sky Loan? for details.
I see four issues in your message:
CashCall is an Anaheim, CA firm that provides unsecured, signature loans to consumers. Rates vary by consumer, but some offered are 139.34% APR. CashCall avoids state usury laws, which limit the maximum interest rate charged to a consumer, by partnering with a bank in a state with no usury rates. The bank makes the loan, and then a few days later CashCall buys the collection account from the bank and becomes the owner of the loan.
CashCall is one of several firms offering high-interest signature loans. Many state attorneys general recommend that consumers avoid high-interest loans. See the Texas Attorney General and California Attorney General's resources about loan rates applicable in Texas and California, respectively.
Bills.com has numerous articles on the collections process available to creditors. Read Collection Advise, which explains wage garnishments, liens, and bank levies.
It is my understanding that you have received a notice from a collection agency for what the CashCall Loan. Consider requesting a debt validation to verify the loan. If the loan cannot be validated it cannot be collected.
A creditor must obtain a judgment before it can collect a debt. This is a legal process that the creditor must complete. By law, the creditor must give the defendant adequate notice of the hearing, at which you have the option to appear. If you did not receive the notice of the summary or complaint, then read this article and comments on judgments and settlement to understand your options. Understanding debt negotiation and settlement and strategies will provide background information you need to resolve your accounts.
As a last resort, you may wish to consider bankruptcy. Your credit score will already have been affected by your other credit issues and the Capital One judgment. Your CashCall loan, like a payday loan may be considered in a bankruptcy filing if you qualify.
I suggest you do the debt validation on the CashCall loan and hopefully negotiate a reasonable settlement for that debt. Contact Capital One and negotiate a settlement before your bank account is levied or a wage garnishment is established. I advise contacting an attorney in your state who is experienced with debt and bankruptcy for further information on how to handle the judgment.
For the benefit of other readers who may be considering a CashCall or payday loan, the Federal Trade Commission suggests these alternatives to high-interest loans:
I hope this information helps you Find. Learn & Save.