State tells check-cashing businesses to get licenses

Thursday, Dec. 14, 2000 | 11:24 a.m.

CARSON CITY -- The state Financial Institutions Division has told seven check cashing businesses in Clark County and one in Pahrump to stop operations until they have obtained a state license.

In cease-and-desist orders to the eight, Deputy Commissioner Lyndon Evans told them "it is unlawful to operate a check-cashing or deferred deposit service without being registered with the commissioner."

The division and the state attorney general's office conducted a joint investigation after receiving complaints that many of these businesses in Southern Nevada were operating without first registering with the state. About 20 firms were investigated and Deputy Attorney General Bob Bryant said further inquiries will occur in the near future.

Attorney General Frankie Sue Del Papa said Wednesday these cease-and-desist orders "are critical as we enter the holiday season, when consumers may be looking for extra money."

The check-cashing businesses, some also called payday lenders, charge fees and make short-term loans in which consumers give a post-dated check as collateral.

Del Papa said her office and the financial division are committed to protecting consumers from these unlicensed businesses.

The cease and desist orders went to AAA Check Man, 4343 N. Rancho Road and 1700 Desert Inn Road; Citywide Funding, 4343 N. Rancho and 1700 Desert Inn; Cash Till Payday doing business as Nevada Publishing Co., 3310 S. Nellis Blvd.; Copy & Mail, 5225 E. Tropicana Ave.; Eastern Check Cashing, 1560 N. Eastern Ave., and EZ Money in Pahrump.

If they continue to operate, the attorney general's office said it could seek court orders to shut them down.

Del Papa also said consumers should make sure they fully understand all terms and conditions of the loan and what the penalties are if repayment is not made within the deadline.