Head of online loan company subject to NH laws, court rulesStaff Report
February 12. 2018 12:14AM
CONCORD — The state Supreme Court said the head of an online loan company is personally subject to New Hampshire banking laws.
The decision involves John Paul Reddam, president and chief executive officer of CashCall, a lending and loan services corporation headquartered in California. Reddam also is president of WS Funding, a subsidiary of CashCall.
The decision keeps the banking department’s “ability to preserve administrative penalties, restitution and other relief against Mr. Reddam personally,” said Assistant Attorney General Seth Zoracki.
Deputy Banking Commissioner Emelia Galdieri said at least 787 New Hampshire consumers allegedly were harmed.
“Most of these consumers were charged far in excess of” a yearly 36 percent cap on interest for such loans, she said.
In 2013, the state banking department issued a cease and desist order against CashCall, WS Funding and Reddam alleging workers made payday or small loans to New Hampshire residents without obtaining a license to do so in violation of state law.
The banking department also alleged they engaged in unfair and deceptive acts and practices in collection with those loans.
The decision can be viewed below: