Ninth Circuit Questions How to Repay Illegal CashCall Loans

The Consumer Financial Protection Bureau urged the Ninth Circuit to overturn a ruling that allowed an online lender to avoid paying consumers who had taken out the company’s illegal high-interest loans.

The U.S. Court of Appeals for the Ninth Circuit, hearing the parties’ arguments over how to classify the money that would be collected to repay the loan consumers, also grappled with the question of how the payments should be awarded.

The CFPB said in oral arguments Thursday that a California district court erred in ruling that the bureau could only seek disgorgement of CashCall Inc.’s profits on illegal loans. ...