Check cashing shops probed

Monday, Nov. 6, 2000 | 11:40 a.m.

CARSON CITY -- An undercover investigation has been conducted into about 20 check cashing businesses in the Las Vegas area to determine if they are breaking the law, the state Attorney General's Office says.

Deputy Attorney General Bob Bryant said Friday the office received a detailed complaint from an individual about the businesses indicating they may have not received a state license.

There are about 50 licensed check cashing shops in Las Vegas. Bryant said he should have the results of the investigation later this week.

An undercover agent went to the 20 businesses posing as a customer and transacted business. Bryant said it must be determined if the operations are performing check cashing businesses and if they should have been licensed.

Attorney General Frankie Sue Del Papa said many consumers need extra money with the holiday season arriving. "We want to make sure these businesses are following the laws of Nevada, therefore better assuring consumers that they will not be taken advantage of during a time of financial need."

Bryant said he will meet with Scott Walshaw, director of the state Division of Financial Institutions, to determine what, if any, action will be taken. The director can issue a cease and desist order or can go to court to get an injunction to stop the firm's business.

These businesses loan money, usually at a high rate of interest, to people who pledge their paychecks as repayment.

Del Papa said consumers should be sure they will have sufficient money to repay the loan within the terms and conditions. And they should make sure they fully understand the penalties if the repayment is not made on time.