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Showing posts with the label Attorney General Brown

Brown Forces Predatory Lender to End Illegal and Abusive Debt Collection Practices

Los Angeles - Attorney General Edmund G. Brown Jr. today forced CashCall, Inc., an Anaheim-based fast-money lender, to stop using "loan shark tactics" in collecting debt, including abusive calls at all hours of the day and night and empty threats of law enforcement action. The court-ordered judgment also forces CashCall to stop misleading consumers with deceptive advertising and pay $1 million in civil penalties and legal expenses. CashCall used former child actor Gary Coleman as its television spokesman. "CashCall preyed on consumers desperate for cash, charging triple digit interest rates and using loan shark tactics to collect on their debts," Brown said. "This judgment forces CashCall to stop harassing its customers and should serve as a warning to consumers to be wary of fast-money lenders." CashCall, owned by Paul Reddam, founder and former owner of DiTech mortgage company, currently charges 139.34% annual interest on the $2,600 loan it offers to con...

Brown Wins $1.2 Million Ruling Against Small Business Rip-Off Artists

San Diego - Continuing his fight against "rip-off artists," Attorney General Edmund G. Brown Jr. won a $1.2 million ruling against Gaston Muhammad, 42, and Ronna Green, 41, of Duluth, GA, who billed nearly a million California business owners $150 each for deceptive and unnecessary corporate minutes services. "These rip-off artists sent nearly a million deceptive mailers to business owners, threatening them with loss of their corporate status if they didn't pay $150 for unnecessary services," Brown said. "In reality, this was a massive scam costing California small business owners hundreds of thousands of dollars." The defendants mailed solicitations to California business owners that were designed to look like State of California official forms-specifically, the Secretary of State's "Annual Statement of Information." The solicitations implied that unless the corporations paid the defendants a $150 annual fee, they could lose their co...

Attorney General Brown Urges California Supreme Court to Invalidate Proposition 8

(CAAG) Sacramento – Attorney General Edmund G. Brown Jr. today called upon the California Supreme Court to invalidate Proposition 8 because it deprives people of the right to marry—an aspect of liberty that the Supreme Court has concluded is guaranteed by the California Constitution. “Proposition 8 must be invalidated because the amendment process cannot be used to extinguish fundamental constitutional rights without compelling justification,” Attorney General Brown said. More...