The Consumer Financial Protection Bureau filed suit this week against All American Check Cashing, Inc., which offers check cashing and payday loans, and its owner, for allegedly tricking and trapping consumers. The complaint alleges that All American tried to keep consumers from learning how much they would be charged to cash a check and used deceptive tactics to stop consumers from backing out of transactions. It also alleges that All American made deceptive statements about the benefits of its high-cost payday loans and failed to provide refunds after consumers made overpayments on their loans.
The complaint requests an injunction against All American’s unlawful practices, redress for consumers, and imposition of penalties.
All American Check Cashing, Inc. is located in Madison, Miss. and offers check cashing services and payday loans at approximately 50 stores in Mississippi, Alabama, and Louisiana. The complaint also names Mid-State Finance, Inc. (doing business as Thrifty Check Advance).
Details are in the CFPB's press release, here. The CFPB complaint is here.
