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CashCall Lawsuit Update: What You Need to Know

The CashCall lawsuit has been making headlines for years, and the recent update is no different. In this article, we’ll provide an overview of the case and the latest developments that you need to know.

Background of the CashCall Lawsuit

CashCall is an online lender that was founded in 2003. The company offered personal loans to consumers at high-interest rates, with some loans carrying an APR of more than 100%. The loans were marketed to consumers with bad credit or no credit history, and the application process was simple and fast.

In 2013, the Consumer Financial Protection Bureau (CFPB) filed a lawsuit against CashCall, alleging that the company’s loans violated the Truth in Lending Act (TILA) and other consumer protection laws. The lawsuit claimed that CashCall engaged in deceptive practices by charging excessive interest rates and failing to properly disclose fees and charges to borrowers.

In January 2017, the court ruled in favor of the CFPB, ordering CashCall to pay $10 million in penalties and restitution to borrowers. The court also voided all loans made by CashCall between 2009 and 2013 that had an APR higher than 12%. However, CashCall challenged the ruling and the case went to appeal.

The Latest Developments

On July 1, 2021, a three-judge panel of the Ninth Circuit Court of Appeals issued a ruling in the case, overturning the lower court’s decision. The court found that CashCall’s loans were not subject to TILA, as the loans were made by a third-party bank that was the named lender on the loan agreements.

The court stated in its ruling that “the bank, not CashCall, was the true lender and thus the loans were not subject to TILA’s disclosure requirements or usury limitations.” The judges acknowledged that this type of lending arrangement, known as “bank partnership lending,” has been controversial and has led to lawsuits and regulatory actions in other cases.

The ruling is a significant victory for CashCall and other online lenders that use similar lending arrangements. The decision sets a precedent that may make it more difficult for regulators to bring lawsuits against online lenders that partner with banks to make loans.

What This Means for Consumers

The ruling in the CashCall lawsuit is unlikely to have a direct impact on consumers who have already borrowed from the company. However, it may have an indirect impact on the payday loan industry and other online lenders that use similar lending arrangements.

The court’s decision essentially gives online lenders a loophole to avoid TILA and other consumer protection laws by partnering with banks to make loans. This could make it easier for online lenders to charge higher interest rates and fees, as they would not be subject to the same regulations and disclosures required under TILA.

Consumers should always read the fine print and understand the terms and conditions of any loan they apply for, whether it’s from a brick-and-mortar lender or an online lender. They should also compare rates and fees from multiple lenders before choosing a loan, and consider alternative options such as credit counseling or debt management programs if they struggle to repay their loans.


The CashCall lawsuit has had a long and complicated history, and the recent ruling by the Ninth Circuit Court of Appeals is just the latest development. While the ruling is a significant victory for CashCall and other online lenders, it may have negative consequences for consumers who may be subject to unregulated and high-interest loans in the future. As always, consumers should exercise caution and carefully evaluate their borrowing options before taking out a loan.

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