Progress in the Fight Against Payday Lenders

In May, the Consumer Financial Protection Bureau filed suit against Mississippi based All American Check Cashing for engaging in deceptive practices. While the suit is still ongoing, progress has been made.

All American Check Cashing Closing Stores

Last week, the company stated in a press release that they would be closing all four stores in Alabama and five out of six stores in Louisiana. All Mississippi stores will remain open. All American will also forgive the loans from those closed stores. The estimated amount forgiven, according to the lender, is $800.000.

All American Calls Claims "Unfair"

One would hope that the closing of the stores and forgiveness of those debts was the result All American’s acknowledgement of wrongdoing and attempt to remedy the harm alleged by the CFPB. But, as I’m sure you’ve guessed, that is not the case. Instead, All American is instead doubling down and continues to call the allegations “unfair and unjustified.” Hopefully, the suit filed against All American will soon stop the alleged deceptive practices at their 42 Mississippi locations as well.

When I meet with a potential client who owes a check cashing or “pay day” lender, it is rare that they owe just one. In a situation with multiple payday loans, it is not likely that the borrower can ever get out of the cycle and out of debt. It is even less likely that the payday loans are the only debts owed.

If you find you are unable to meet your financial obligations and think you may visit a check cashing company, we can help you resolve the issue beforehand. If you already owe payday lenders or any other type of unmanageable debt, we can help you as well. Please call our office nearest you to set up a free consultation with one of our experienced attorneys.