Feb 5, 2015 6:29 PM by News Staff
SACRAMENTO, Calif. (AP) - Online lender CashCall Inc. will pay restitution to borrowers and $1 million in penalties as part of a settlement with the state of California over what officials called a predatory lending scheme.
The Department of Business Oversight said Thursday that the Anaheim-based firm will pay wronged borrowers $125 each in restitution. The final number of eligible borrowers and the ultimate restitution total will be determined by a third-party auditor.
CashCall's preliminary review of its files indicates thousands of customers will receive restitution.
The state says the settlement resolves allegations that CashCall unlawfully deceived consumers, filed false reports and made false representations to the agency.
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