- Associated Press - Wednesday, November 25, 2015

CHARLESTON, W.Va. (AP) - West Virginia Attorney General Patrick Morrisey says a private lender has agreed to a $13 million settlement stemming from abusive debt collections.

Morrisey announced on Wednesday the settlement with CashCall Inc. Terms call for the non-bank lender to immediately make a $10 million lump sum payment to customers. The remainder will be paid out in installments.

State attorneys say CashCall used a so-called rent-a-bank model in an attempt to skirt the state’s consumer protection laws.

A circuit court judge found that CashCall violated state lending laws and owed consumers restitution. It also ordered the company to reimburse the state for attorneys’ fees.

Terms of the settlement received final approval last week from Kanawha Circuit Judge Duke Bloom.


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