Video: Mississippi Regulators Order Check Cashing Business To Close

JACKSON, Miss. (AP) – Mississippi officials are forcing one of the state’s largest payday lenders to close, imposing fines of more than $1.5 million.

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. The company must pay fines of $1.58 million and refunds to at least 700 customers.

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.

The U.S. Consumer Financial Protection Bureau is suing All American in federal court, seeking to force repayment to more customers.

All American has strenuously disputed the enforcement actions, even filing a state ethics complaint against a banking regulator.