On August 31, 2016, in a ground breaking decision, the United States District Court in Los Angeles ruled that CashCall, Inc. violated the Consumer Financial Protection Act in connection with efforts to collect on certain loans that would have been held void under state law  had CashCall originated the loans in question in the states where the borrowers resided.  According to the pleadings, CashCall had worked closely with the originator of the loans in question, assisting with the logistics of originating the loans and purchased all of the loans shortly after loan origination.  The court concluded that CashCall was the “true lender” and was responsible for the issuance of the loans – rejecting CashCall’s contention that another firm (based on a Native American reservation) was the originator of the loans.  While the full impact of this decision is not yet known, it is critical reading for anyone engaged in the loan origination space.