CFPB Calls CashCall’s Bid To Erase $157M Judgment A ‘Desperate Attempt’
By CU Today Staff —
LOS ANGELES—The Consumer Financial Protection Bureau is urging a California federal judge to reject CashCall Inc.’s effort to wipe out a more than $157-million enforcement judgment, calling the bankrupt online lender’s allegations that the agency pulled a settlement “bait-and-switch” baseless.
Bloomberg Law reported the CFPB characterized CashCall’s latest move as a “desperate attempt” to avoid the judgment.
CashCall had accused the CFPB of walking away from negotiations that it believed would substantially reduce the judgment, according to Law360. The lender asked the U.S. District Court for the Central District of California to vacate the judgment, but the CFPB countered that CashCall is essentially trying to relitigate arguments it lost or complain that the government ultimately declined to settle. The original judgment has grown to approximately $182 million with interest, according to Bloomberg Law.
The fight stems from a CFPB enforcement action dating to 2013 alleging CashCall and related companies collected interest and fees on consumer loans that were void or uncollectible under state law. Following years of litigation, the district court in 2023 ordered $134.1 million in restitution and a $33.3 million civil penalty. The Ninth Circuit subsequently affirmed the judgment, including the restitution award, rejecting CashCall’s argument that its Seventh Amendment jury-trial rights had been violated.
CashCall then sought review by the U.S. Supreme Court, but the justices denied its petition March 2, 2026, leaving the judgment intact.
Originally reported by CU Today.