When analyzing business practices, it is important to be rational and fair to both sides. Demonizing a company achieves little. Here is my opinion on CashCall's business practices.
1) Financial Disclosure. CashCall is better about this than many other companies. Payday loan providers don't even disclose their APR rate, you have to do the math to figure out a $20 fee for a two-week loan on $100 has an interest rate of over 500%. Tax preparation companies didn't even originally let customers they were actually taking loans when they did "Rapid Refunds". Jackson Hewitt spent $5 million to settle with the California Attorney General over deceptive marketing practices.
CashCall lists financial numbers of its loans very clearly on its Rates Page. It is linked to on its main navigation bar. It even lists the payment amounts and quantity. This is even better than my credit card - I'd have to dig through my monthly statement to find the APR rate. I'm not sure if I'd know how to calculate how much I would pay in total if I only paid the minimum every month.
Of course, this is only in regards to their website. CashCall has an extensive televisionmarketing campaign and ordering directly through the phone might be a lot different. Please comment on this thread if you have any experience in this matter.
2) High interest rates. CashCall does have a very high interest rate of 99%. But it is much cheaper than similar loans. As previously mentioned, payday loans have an interest rate of 500%.
Providers of these type of unsecured, no-credit-check loans need to charge a high interest rate because of the increased default rate. Information on the exact numbers that are available to the public are difficult to come by. The best I could find is that 10.04% of subprime mortgages were past due in mid-2004, compared to 2.4% of prime loans. But remember that mortgages are larger and thus more difficult to get, have credit checks and are secured with property. Also, the default rate of subprime loans skyrockets during recessions, so looking at the numbers when things are rosy doesn't provide the whole picture. Providian was a credit card company that targeted people with low income and bad credit history. They came under fire for bilking the poor with exorbitant rates. But ironically these so-called usurious rates weren't enough. The company almost went under during the 2003 recession and had to layoff about 70% of its 11,000 employees.
3) Aggressive collection tactics. Many customers have posted horrifying stories on RipoffReport.com - multiple calls per day, threats of lawsuits, contacting family members, even coming to people's houses. But unfortunately this is the standard in the collection agency business today. I'd probably get harassed in a similar way if I defaulted on my car loan.
I don't agree with this business practice at all. Many of these tactics are very similar to those of loan sharks. It should be illegal. But CashCall shouldn't be singled out because this is an industry problem. This is very similar to how I view Walmart and it's labor issue problem. Walmart treats its employees poorly, but so does Target and McDonalds. I don't have a specific problem with Walmart; I have a problem with the treatment of low-wage Americans. Likewise, attacking only CashCall for its collection practices is intellectually unsound.
4) Total lack of leniency for customers. Unfortunately, we can only infer about this practice from anecdotal evidence. Based on browsing RipoffReport.com complaints, CashCall lacks any sympathy for the customer. Pleads for extensions for a couple of days are denied. Casey Serin, a blogger who has been featured on many popular TVs and newspapers, worked out a deal with CashCall to give a lump sum in exchange for some breathing room. He got the paper work in a couple days late and the company made it a no-go.
CashCall's typical customer who pays his or her bills on times yields plenty of profit. The high interest rate serves as a built-in buffer for default losses. It should act as a responsible corporate citizen and not squeeze people ruthlessly for a couple extra pennies of profit.
Feel free to let your opinion be heard by commenting on this post.
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29 comments:
I've heard some pretty wild stories about these guys. I got my loan from cashloancity.com and it's been really good so far.
I got a loan threw cashcall, and So far I have paid my payments in time every month. I look back now and think, 99%? what the heck was I thinking. But I was in a little bind, and it helped out.
The only problem I have, is they check my credit ALOT, i guess its in the contract? But it effects my credit score. Im going to try and get a hold of them again, and see if I can tell them to ease up a bit, i pay on time, and i have never been late, so i dont know why the need to check my credit, i just dont think thats fair. Ill post again if i work anything out with them.
This is an old story when it comes to my history with Cashcall.
When they "DIP " into your account and, find the payment isn't there, Of course they call you.
However this is where their HARASSING Techniques begin.
I was working out of state and, don't have direct deposit,I couldn't get to the bank in time to make the deposit for the payment to clear.
This was on a Thursday morning and, I told them the payment would be there Monday Morning.
Even after these arrangements had been made They continued phone calls (19 in total) over the next
Two days.
I have spent in this short a time 480.00 in fees for them not top get their 216.55.
They are owed the money but,Their harrasment is not right.
THEY SUCK!
I have a cash call loan and I have missed one payment that I had to send them money on and I think I missed one or two other times as well. One time the money JUUUST wasn't there. Other times it was there and they only debited for the amount owed. The first time cost me an addition $15 plus the cost of the wire transfer. I don't remember being called but a couple of times. I think I do remember being told I'd be called until it was taken care of and haven't heard from them since, except for monthly email to remind me my payment is due in five days. I read ripoff.com and was shocked at the stories. The loan paperwork I received told me up front that my interest rate was 60% and if I only made the minimum, that *choking on the tears* my loan for 5Gs would cost me 30Gs over the life of the loan. I was in severe need, so I took it eyes wide open. I can't say that it's been a pleasent experience, nut that's just because those useless payments hurt. So far, Cashcall has been a breeze for me to deal with. I have been told that if I am going to have a problem a payment, contact them 5 or more days prior and make arrangements. Getting some account information has been impossible online, but that's because I don't have a sign on yet and haven't contacted them yet. I'm simp-ly shocked that there have been so many unpleasent experiences.
I was informed by an attorney that CashCall is going bankrupt. Within 7-8 months they will be in court.
J. you are full of shit. You are more than likely some bored empolyee who likes his/her job and insulting people. You are a collector. If someone takes out a loan at a sub prime rate it is because that person is in need and not all person are in the same situation. Oh, and it is about tone when you offer information or your opinion about a company that has a really really agressive and a no mercy collection policy. Consider your tone when you offer information to people who have in there opinion been taken advantage of. Conside this: I have been laid off of my job and I can't make my payment on time. I call and tell you and request an extention of a few weeks. Your companies response is no and I will recieve 15 calls in one day until the payment is processed. You should take a wider view of what is in front of you before you conclude that complaints are laughable. Eat shit and die, J. former employee... You attidude is why american are so hated in other countries.
High-risk loans demand a high interest rate. Hohum. Nothing irresponsible about that. Get a new soapbox.
I've paid my payments on time, I finally am reall drained financially. Oct. 2005 - I got a loan for 2000.00 I've paid on time every month on time. Until this month I just couldn't. I was called by the most rude little **** she wanted to know everything. I told her that I could possible pay on the 15th , she said due to my financial situation that CashCall could not afford this method to possibly accept a payment by that date, it had to be right now! I told her to ****off. I mean really. j. is a jerk too, he probably works for Gary Coleman. I will have it paid off in 6 months but I certainly do not deserve the treat that I got on the phone. DONT GET A LOAN THROGH CASHCALL
Okay all you CashCall employees...explain this: I had a CashCall account for a $2600 loan. They gave me the loan 2 months after my bankruptcy was discharged & when my credit score was rock bottom. I paid off the loan in less than one year with NO late payments. When I reapplied for a loan, I was DENIED for a bad credit score. When I checked my credit reports - the only thing that had changed was the additional Cashcall account in GOOD standing and a better credit score than when the 1st loan was initiated. What is up with that?
i can at least speculate as to why the poster would have been denied the second loan...i could even see where his credit score may not have seen any or much improvement...it's about AVAILABLE OPEN LINES OF CREDIT. it isn't all just about paying bills on time...it's about USING the credit system and maintaining open lines, even if it's just for the sake of your good credit.
in the "article" on the page before this, i noticed an emphasis on comparison between cashcall's 99% APR and the "500%APR" from a payday lender. that's CRAP, because unlike cashcall (and other consumer) loans, payday loans are not MEANT to drag out over an entire YEAR. it's supposed to be TWO WEEKS, that's it. the APR is crap. usually the INTEREST paid on a payday loan only amounts to about 10-15% of the amount borrowed. the APR looks bad because that's what happens when your loan period is two weeks.
BTW, cashcall loans are underwritten by first bank of delaware, except in CA and a couple other states. this means they can export delaware interest rates in order to exceed interest rates in any other state (no cap in DE).
a cashcall loan is not something i'd take out unless i had a concrete plan to pay it off within a year (like w/next tax return, for example). it's a good tool if you're prudent.
BTW, j.--it's kind of funny how you classify people who encounter hardship as having "burned" cashcall or other creditors. i work in the collection industry...i'm as jaded as it gets, but i know better than to simply assume this to be the case. we handle mostly PAYDAY loans, and the only people we make such assumptions about are the ones who go from lender to lender taking out loans with no intent to repay most, if ANY of them. in other words, PLANNING to rip them off. so j.--why so much venom for regular people with issues? it's like you start out trying to do a decent thing by informing people that services like cashcall aren't all bad, that it CAN be a good program...but then you get all freaky and start insulting the people you're supposedly trying to influence. kind of strange, that's all...
I’m 29 and I have pretty good credit, and I tried to get a loan through cash call due to me going back to school, and needing additional funds. Well I was denied as well. I really was shock… My father who has perfect credit tried as well and was denied. I sometimes wonder is cash call really legit, are just some company who just collect people info. But I’m sure the perfect little “J” the blogger could answer that right? I’m curious about something maybe I’m the only one who really wonders… J you mention that cash call laid you off, and you stated that it was due to deadbeats who don't pay there bills, forcing companies to lay people off. Wow good one blaming your misfortune on someone else. I’m curious to know what make you think that you where fired, oh excuse me LAID OFF due to people not paying there cash call loans on time? Seems to me it could have been anything. Maybe you had a few complaints about how jacked up you attitude and personality is… Are maybe the big cash call boss didn’t like you at all. Who knows what it could have been, but I do believe that everybody that can’t pay bills on time are not deadbeats. Sometimes shit happen… Question have you found another job since working at cash call? Cause if not that explain your attitude but if you have to think about it, what if you couldn’t find another job and all the money that I’m sure you J the so perfect little angry person that you r put away for hard times runs out and you have no way to pay bills not because you don’t want to pay them because you can’t: would that make you a deadbeat? What I think is that you feed your self esteem off other people misery, because all the bad things you had to say to these people where so elementary. Just because you don’t agree that cash call is a rip off company because you the perfect one work there and nothing illegal could possible have happen right? I mean are you that angry that you wanted to make other feel as shitty as you feel. Now who I really sympathized with is you. You may think in your narcissistic mind that you’re just being real, and maybe in some other mind you might be, but you can’t judge one person choices they make and think you really know what that person is dealing with. Like I said everyone who sometimes can’t pay there bills on time are not all deadbeats. I do have to say you are one angry little person though… Woo Woo Woo do you just need a hug, or does that J stand for jackass??? Now look at me, stooping to your level of name calling. SHAME ON ME!!!
Smooches
Hello J,
I agree with everything you say regarding peoples payments. If you make a conscious decision to borrow money with the lack of qualifications, accept the terms and pay your bills on time to avoid any collections/harassment. I had a question for you...
I was wondering, as a cashcall employee, do you know the approximate default rate on a lot of the loans or as a company whole? Also, what kind of employment/income criteria specifically were the most important when getting qualified for the company?
I took out a few loans with The Call in the last 3 years to help get back on my feet financially. While I don't like their interest rate, I needed their services and they provided me with the funds and disclosed all fees and interests quite clearly. I paid my loans back within a 3 months each. They collected a fee for their service and I got what i needed. They actually seemed happy on the phone that I was paying early. I actually received a check back from them for overpayment like a week after closing. I wish they would just lower their rates to 50% or less so peole can make some headway and not feel swallowed. Don't take this or any loan if you can't make the payments. I can't defend them with a 99% rate but when you sign a contract you are bound to it, period. There was no hidden fees involved.
Cash Call loans are on the up. I am employee there currently.. the problem is the employees steal customers id.. the 90 day collectors get over $7,000 a month in commission.. they go to money gram pay a $50 extension fee to bring the customer current and forge the customers name/signatures so they make ther goal and big commission.. One of the females Brandons pet runs credit on her husbands girlfriend and him to stalk them. illegal to do that with out permission. The collectors misuse the tools for there own benefit... The guy who runs it Luis Ochoa and Ceasar both have sex with employees.. Ceasar got a blow job at christmas party. the girl was fired..Sean bennet the top manager had sex with Christina Petito anyone who complained about it was fires. she had sex 4 months with supervisor Brian Dowd.. ruined the department.. She is crazy and takes crazy pills.. the employees here at cash call are the one to worry about the loans are exactly what they are....Identity Theft by the employees.. The customer loans provide them with the drivers lic. social security card there signatures, everything you need to create a new identity.. Louis is laundering money.They move money to fast thru the company... Sex drugs sold on the property... this can all be verified with the people and cleaning crew that rent the building.. so worry about your identiy not your loan.... jg
current Cash Call employee here.. worked there 3 years... Putting aside the bad collection practices.. The 90 day collectors make over $6,000 in commision a month besides ther pay check.they get deperate and forge customers signatures and pay the $50 extension fee to make the account current.. Female in 90 days runs credit on her ole mans girlfriend to stalk her and she doenst have a loan with cash call. employees steal customers identiy..the drivers license, social security card and signature of customer....
if you took out a loan beware!!! Louis Ochoa and side kick Ceasar both have sex in there offices with employees . Ceasar got blow job at christmas party..then fired the poor girl. employees sell drugs on the premises... Sean Bennet manager has sex with employess then fires anyone that speaks of it..Christina Petito has done all the men at Cash Call... She alone ruined lives and Jobs..
This company loans may be on the up. watch out for your personl info.. employees steal it.. The company turns money over to fast.. they are laundering money... i could go on & on but bored..... all this can be verifed as true....the loans are on the up.. the employees are out of control and the management. Paul Redman allows sex at work, id theft.. employee abuse if you dont go along with Ceasar or Louis..The human resourse dept is just as bad. the black girl in ther is aware of what is goig on and will not protect the employee.... worry about you id being stolen not the loan................jessica
Jessica,
Don't be a retard. Not even dogs bite the hand that feeds them. If you're not eating, move on.
If you are aware that innocent people's identities are being stolen, you are equally culpable for not turning them in.
As for the other stuff, it happens more often than you think at other places where a bunch of men work. here's a clue : men are horny! Get over it or work elsewhere. or turn them in and shut up.
Jessica,
How does it feel to be the Linda Tripp of cashcall?
Cashcall is a ripoff, i don't care what they disclose. I have tried to get them to work with me on my loan, but i'm done. I dont care about them being on my credit, i have lots of credit in good standing. The whores that call my house everyday can keep calling, fuck cashcalland the slimy dogs that work for them.They're interest rate is almost 150%, which is criminal, i'm not giving them one dime more than what i owe them,and i seriously hope they all burn in hell
Hmmm, personally I think your post is too sympathetic. The reasioning seems to be akin to saying, why pick on this guy? He only killed 10 people. There are some others who have killed 100.
Thanks for the effort, though.
Do payday loans firms provide a legitimized service that folks really need or dark beer simply preying on individuals with nowhere left to turn for credit options.easy payday loans
I got a loan threw cashcall, and So far I have paid my payments in time every month. I look back now and think, 99%? what the heck was I thinking. But I was in a little bind, and it helped out. free credit reports from all 3 bureaus
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