CashCall fined by state of California on clarkhoward.com

Have you seen former child actor Gary Coleman doing late night TV ads for a company called CashCall?

Coleman's endorsement legitimized the company in the eyes of some consumers -- even though CashCall's loans were issued at 139 percent interest for a term of three years.

Who gets up in the morning and says, "I want a three-year loan for 139 percent interest?!"

Actually, it turned out the Diff'rent Strokes star was himself indebted to the company and filmed the ads in exchange for loan forgiveness!

The attorney general of the state of California has now fined CashCall $1 million for misleading ads and using loan shark tactics to collect debt.

CashCall had been advertising loans at 36 percent interest with mice type on the TV screen stating that the rate only applied to active duty military personnel.

In addition, the company would talk about personal financial info to borrowers' neighbors, bosses and co-workers in an effort to shame people into paying.

Finally, there were threats of wage garnishment without going through the standard legal routes to obtain garnishment.

The moral of the story here is that you've got to use your own good judgment before you get into trouble. Nobody will just hand you money at a good rate with no questions asked.

What others are saying

My Man Gary
"What 'chu talkin' 'bout Attorney General of California?"
By Nick @ 09/15/09 06:17:33 AMreport abuse
Gary Coleman
"Coleman's endorsement legitimized the company in the eyes of some consumers"

Yes, Gary Coleman is the first thing that comes to my mind when I think "Is this thing legitimate?"
By Rob Evans @ 09/14/09 08:34:42 AMreport abuse
Fraud
All the fraudsters Clark talks about pale in comparison to our own government running the world's largest Ponzi scheme, aka, Social Security. Our own government began taking money out of the Social Security trust to fund Lyndon Johnson's social programs in 1967. Politicians enjoyed it so much that they have taken money out just about every year since then. But the good times are about to end as the fund is just about empty. As a matter of fact, if the economy does not improve, the Social Security fund could be empty by the end of next year. It should be great fun to watch Washington, which is addicted to spending Social Security money, suddenly have to come up with the money to keep Social Security checks from bouncing. CashCall is a small time fraudster when up against our own government. If people knew what was going on with Social Security, they would never want this government to be involved in health care in any way.
By Buzz G @ 09/13/09 10:05:44 AMreport abuse
And the abuse continues......
Credit card companies calling relatives searching for debtors.
Representatives at all levels taking freely and often from the public coffers.
Elected representatives ignoring the economy to push healthcare.
And now, poor Gary Coleman is pressured into persuading his fellow customers aka audience that he knows anything about anything.
The world is coming to an end.
I wish Dana Plato was still around, maybe she could straighten Arnold out. And she certainly knew just as much about how to fix the economy as our representatives do, afterall didn't she try to rob a bank?
What you talkin' bout a 2 trillion dollar deficit is not possible. How about ten trillion Arnold.

I am moving to live with the aborigines after I lose my house, anyone else want to join me?
By Enough already @ 09/12/09 03:48:22 PMreport abuse

My Man Gary

"What 'chu talkin' 'bout Attorney General of California?"

By Nick @ 09/15/09 06:17:33 AMreport abuse

Gary Coleman

"Coleman's endorsement legitimized the company in the eyes of some consumers"

Yes, Gary Coleman is the first thing that comes to my mind when I think "Is this thing legitimate?"

By Rob Evans @ 09/14/09 08:34:42 AMreport abuse

Fraud

All the fraudsters Clark talks about pale in comparison to our own government running the world's largest Ponzi scheme, aka, Social Security. Our own government began taking money out of the Social Security trust to fund Lyndon Johnson's social programs in 1967. Politicians enjoyed it so much that they have taken money out just about every year since then. But the good times are about to end as the fund is just about empty. As a matter of fact, if the economy does not improve, the Social Security fund could be empty by the end of next year. It should be great fun to watch Washington, which is addicted to spending Social Security money, suddenly have to come up with the money to keep Social Security checks from bouncing. CashCall is a small time fraudster when up against our own government. If people knew what was going on with Social Security, they would never want this government to be involved in health care in any way.

By Buzz G @ 09/13/09 10:05:44 AMreport abuse

And the abuse continues......

Credit card companies calling relatives searching for debtors.
Representatives at all levels taking freely and often from the public coffers.
Elected representatives ignoring the economy to push healthcare.
And now, poor Gary Coleman is pressured into persuading his fellow customers aka audience that he knows anything about anything.
The world is coming to an end.
I wish Dana Plato was still around, maybe she could straighten Arnold out. And she certainly knew just as much about how to fix the economy as our representatives do, afterall didn't she try to rob a bank?
What you talkin' bout a 2 trillion dollar deficit is not possible. How about ten trillion Arnold.

I am moving to live with the aborigines after I lose my house, anyone else want to join me?

By Enough already @ 09/12/09 03:48:22 PMreport abuse

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Sep 11, 2009 -- CashCall fined by state of California

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