Judge lets state agency shut down Mississippi payday lender

A judge said Mississippi regulators can shut down one of the state’s largest payday lenders, prompting an appeal.

Hinds County Chancery Judge Dewayne Thomas had temporarily blocked penalties against All American Check Cashing by state banking regulators. But he ruled Tuesday that he wouldn’t reinstate All American’s licenses to cash checks or make small loans while the company fights the state agency.

Lawyer Michael Cory said All American is appealing Thomas’ ruling to the state Supreme Court.

Without licenses, the company can only collect on previously made loans. Thomas said All American can postpone paying $1.58 million in fines by posting a $500,000 bond, but he says $135,000 in state-ordered customer refunds should proceed.

Regulators said All American broke state law by encouraging customers to pay only interest on loans.

Source: WAPT