DES MOINES, Iowa (AP) – Officials have revoked an online lender’s Iowa license over allegations of exorbitant interest rates. The Iowa Superintendent of Banking said Monday that CashCall Inc. must pay $1.5 million in restitution costs and stop lending money to Iowa residents. The state’s Division of Banking says the settlement offers restitution for more than 3,400 illegal loans by the company.

The California-based CashCall was accused of charging borrowers illegally high interest rates. Officials say that violated state lending laws. As part of the agreement, CashCall neither admits nor denies wrongdoing. The company has tried to argue that its lending activity is beyond Iowa’s jurisdictional reach because it originated through another company that offered loans on an Indian reservation in South Dakota.