For Immediate Release
December 17, 2013
Robert F. Adams, Assistant Attorney General
Yesterday the federal Consumer Finance Protection Bureau ("CFPB") filed an action in federal district court in Massachusetts against CashCall, Inc., WS Funding, LLC, Delbert Services Corporation, and J. Paul Reddam alleging that the defendants violated the federal Consumer Protection Act (12 USC §§ 5531(a), 5536(a), 5564(a)) by purchasing, servicing and collecting on consumer installment loans that state laws rendered void or which limited the collectability of such loans. The CFPB complaint alleged in part that the defendants purchased, serviced and collected on such loans in violation of New Hampshire law.
The New Hampshire Banking Department ("NHBD") issued a Cease and Desist Order on June 4, 2013 against CashCall, Inc., WS Funding, LLC and J. Paul Reddam alleging that they had made payday or small loans to New Hampshire residents without obtaining a license to do so in violation of RSA 399-A:2. The NHBD Cease and Desist Order further alleged that the respondents engaged in unfair and deceptive acts and practices in connection with these loans. The Respondents are currently appealing that Cease and Desist Order. However, the New Hampshire Banking Department has learned that the respondents have engaged in subsequent conduct in violation of that Cease and Desist Order and have referred the matter to the New Hampshire Attorney General to seek enforcement of the Cease and Desist Order in the Superior Court.
The New Hampshire Attorney General will be taking action to enforce the Cease and Desist Order and will join the CFPB, Colorado and North Carolina in pursuing violations by CashCall, WS Funding, LLC, and Reddam.
New Hampshire Department of Justice | 33 Capitol Street | Concord, NH | 03301