CashCall, Inc. v. Comm’r of Fin. Regulation

The Commissioner of Financial Regulation of the Department of Labor, Licensing, and Regulation brought an administrative enforcement action against CashCall, Inc., a California corporation that marketed high-interest loans to consumers through television and internet advertisements, and John Paul Reddam (together, Petitioners), the corporation’s president and owner, alleging that Petitioners violated the Maryland Credit Services Business Act (MCSBA). The Commissioner concluded that CashCall was subject to the MCSBA, ordered Petitioners to cease and desist from engaging in the credit services business, and ordered that Petitioners pay a civil penalty. The circuit court reversed, concluding that CashCall was not a “credit services” business under the MCSBA. The Court of Special Appeals affirmed. The Court of Appeals affirmed, holding that the MCSBA’s definition of a “credit services business” requires there to be a direct payment from a consumer to an entity whose primary business is to assist consumers in obtaining loans that would be usurious under Maryland law. View "CashCall, Inc. v. Comm'r of Fin. Regulation" on Justia Law