12/17/2013 3:04PM

CashCall, Reddam being sued by Consumer Financial Protection Bureau

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CashCall, the online lending business that is a sponsor of the $750,000 CashCall Futurity at Betfair Hollywood Park, and the company’s founder, the horse owner J. Paul Reddam, were named in a lawsuit filed on Monday by the Consumer Financial Protection Bureau alleging that the company violated consumer-protection law, the bureau announced.

The suit alleges that CashCall and two related companies under Reddam’s ownership “engaged in unfair, deceptive, and abusive practices, including illegally debiting consumer checking accounts for loans that were void,” according to the bureau. The suit says the charges relate to consumer loans that violated either licensing requirements or interest-rate caps in at least eight states, and it seeks monetary damages and civil penalties, the bureau said.

Neil Barofsky, the attorney for the companies and Reddam, did not immediately respond to a request for comment, but in a statement released to reporters, he said that “the charges against CashCall are without merit, [and] we will fight them in court.”

Reddam has owned horses for nearly 30 years, and his colt I’ll Have Another won the 2012 Kentucky Derby and Preakness Stakes.

A former professor of philosophy at the California State University in Los Angeles, Reddam entered the loan business with DiTech.com, a mortgage loan company he started in 1995 and sold to General Motors in 1999.

Five More than 1 year ago
Dirty money for sure, and horse racing welcomes him. That's the state of this sport/game.
Elsa Monroy More than 1 year ago
Btw jp reddam makes allllllll his dough as organized loan shark...cash call mortgage refi dont fall for it....total scammer...the only intelligent item out this outfit is witgenstein..but dont let this linguist fool u...predator err scum err shark should have been name of futurity
Elsa Monroy More than 1 year ago
Total scam artists..doug errr drug o neill is his main trainer..busted and suspended for illegal drug infractions..slapped on hand for parking ticket fines..o wellsub leandro can fill in..horseracing total joke...no regulation...no wonder tracks are closing down...btw mike mitcell bafffert on list too..no worries....just regular guys in dope infested sport...
Walter More than 1 year ago
Cashcall is legal loan sharking. Giving ultra high interest rate loans to low income folks, Shame that the Hollywood Futurity sold its name. Doesn't matter much now since the Hollywood Futurity is gone now.
Five More than 1 year ago
New. What's the difference(s), between the ATM heist, trainers/vets with syringes, and CashCall (owner) & cos. ?
chad mc rory More than 1 year ago
Take his number down and redistribute the purses.
Five More than 1 year ago
No problem. Will just buy more horses on the Derby trail. There's more scam money in the till.
chad mc rory More than 1 year ago
From Obama right on down...
Five More than 1 year ago
From Obama, there's not much to go on down, he's at the bottom of the polls.