Pawn broker EZCORP Inc. said Tuesday it will stop operations at its 11 stores in Florida.
EZCORP is closing the stores as it appeals a cease and desist order that was issued Thursday by the state's Office of Financial Regulation. The regulator issued the order after an administrative law judge recommended it in March, saying EZCORP violated state usury law.
Usury laws restrict the amount of interest that can be charged on loans.
EZCORP said the store closures will result in a charge of about $800,000 during the current quarter. Even with the charge, EZCORP says it still expects to achieve its quarterly earnings outlook of 21 cents per share.
Analysts polled by Thomson Financial, on average, forecast earnings of 21 cents per share, for the quarter.
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