West Virginia Trial Court Awards Attorney General $15 Million Judgment for Violations of State Debt Collection and Usury Laws
After a bench trial, the West Virginia state court awarded the state attorney general judgment against CashCall for violations of the West Virginia Consumer Credit Protection Act (WVCCPA). The two-part judgment included over $15 million in damages, restitution, civil penalties, and cancelled debt. Troutman Sanders was not involved in the case.
First, the Court found that CashCall engaged in unlawful debt collection by using abusive telephone calls (high volume, calls to third parties, and threats of legal action) and by requiring consumers to consent to automatic debits as a condition for loan approval (voiding 292 loans and assessing $3M in penalties). Second, the Court found that CashCall made loans significantly exceeding the state interest rate cap of 18%, and awarded 4X the assessed interest ($10M). State of West Virginia ex rel. McGraw v. CashCall, Inc., Case No. 08-C-1964 (Sept. 10, 2012) ( Decision I, Decision II). We will continue to monitor this case for any appeal or other post-trial proceedings.
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