Federal agency seeks penalties against Mississippi lender

JACKSON, Miss. (AP) – A federal agency wants more penalties against a Mississippi payday lender, asking a federal judge to order the company and its owner to pay $8.3 million.

In court papers filed Friday, the Consumer Financial Protection Bureau alleged All American Check Cashing Inc. and owner Michael Gray hid check cashing fee schedules, misled people into taking out costlier loans, and wrongly kept consumer overpayments.

All American’s lawyer couldn’t immediately be reached for comment Monday.

Mississippi officials earlier revoked the licenses of All American, fining it nearly $900,000 and ordering refunds of $135,000 to 700 customers.

The bureau also seeks to permanently ban Gray from financial businesses and additional “significant” fines.

Gray sold most of All American’s assets to Ohio-based Community Choice Financial in June after the state revoked the company’s licenses.

(Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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