When the economy is mired in a recession that’s historic in scope and nature, more people than usual find themselves in a situation where cash is short. When this occurs, people will look in several different directions for help, and many will work with companies despite not being familiar with the industry in which they tend to deal. One of those companies, CashCall, Inc., has been providing quick loans to consumers strapped for cash for several years, and the company is well-known based on its heavy television advertising.

However, the company has encountered serious problems with its practices, and was ordered on Monday to pay a $1 million fine and to halt its ‘loan-shark’ collection activities. According to the Sacramento Bee:

The Anaheim-based company, was accused by state Attorney General Jerry Brown of deceptive advertising and making “excessive and verbally abusive” phone calls to consumers, some of whom pay interest rates as high as 139 percent.

“Their activity was egregious,” said Scott Gerber, spokesman for Brown’s office, which investigated CashCall for more than a year.

Preying on people who are “desperate to get quick cash,” Gerber said, CashCall used abusive tactics when people couldn’t afford to repay.

According to the attorney general’s complaint, the lender phoned delinquent consumers “at all hours of the day and night”; discussed borrowers’ private financial information with their friends, colleagues and neighbors; and ignored requests to cancel automatic bank withdrawals.”

If you or someone you love has been harassed by this or any other loan or collection company in such a way that it constitutes clear abuse, you need the help of Sacramento personal injury lawyers who understand how to hold these companies accountable for their illegal practices. Contact Demas Law Group today to schedule a free initial consultation.