A judge is blocking a state order that would close one of Mississippi's largest payday lenders. Photo courtesy Flickr/Taberandrew
JACKSON, Miss. (AP) — A judge is blocking a state order that would close one of Mississippi's largest payday lenders.
Hinds County Chancery Judge Dewayne Thomas signed a temporary restraining order Friday, allowing All American Check Cashers to stay open.
The Mississippi Department of Banking and Consumer Finance on Thursday ordered All American to close and pay $1.58 million in fines. The state also ordered refunds to at least 700 customers.
Federal and state regulators in 2014 accused All American Check Cashing of breaking state law by encouraging customers to pay only interest on car title and payday loans.
The U.S. Consumer Financial Protection Bureau is suing All American in federal court, seeking to force repayment to more customers.
All American strenuously disputes the enforcement actions, saying regulators are biased and violating its rights.
The Mississippi Department of Banking and Consumer Finance issued the order Thursday, revoking 75 licenses held by All American and ordering an immediate stop to new loans.
Federal and state regulators announced in 2014 that All American Check Cashing was illegally encouraging customers to pay only interest on car title and payday loans, accusing it of breaking Mississippi law.
All American has strenuously disputed the enforcement actions, even filing a state ethics complaint against a banking regulator.
This story has been updated to reflect the latest order.
Copyright Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
More like this story
Support our reporting -- Follow the MFP.
