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Saying it charged illegally high interest rates to customers, Attorney General Andrea Campbell announced her office was forcing EasyPay out of the Massachusetts market.

The California-based non-bank consumer lender agreed to exit the state, pay $625,000 to Massachusetts residents who were customers as far back as 2018 and stop collecting payments on any active loans it has to Massachusetts consumers or any defaulted loans that hadn’t yet been discharged under bankruptcy proceedings.

The steps are part of a settlement reached Tuesday in a case Campbell brought under Massachusetts’ consumer protection laws. As part of the settlement, EasyPay denied wrongdoing.

“EasyPay is proud to facilitate responsible and transparent financing solutions for the many Americans who are left behind by the traditional banking and credit systems. We had a principled disagreement with Massachusetts on the issues, and the terms of the settlement reflect this. Ultimately, the company is pleased to have reached a resolution that allows the business to move forward,” EasyPay said in a statement Wednesday.

Campbell’s office claimed EasyPay partnered with TAB Bank, a $1.48 billion-asset Utah-based bank focused on consumer and small business loans, to make consumer loans in Massachusetts with interest rates that averaged 100 percent APR. The state’s consumer protection laws generally bar charging interest rates above 20 percent on consumer debt.

The settlement document states the loans were structured to give EasyPay a 90 percent participation interest and “most” of the exposure if a loan stops performing. EasyPay was responsible for monitoring fraud and credit risk, providing customer service and the underwriting model, but TAB Bank retains title to the loans.

EasyPay’s attorneys claimed this meant it was not liable for loans whose interest rates violated state law. In announcing the settlement, Campbell’s office called the set-up a “rent-a-bank scheme” that was “laundering loans through a bank not subject to Massachusetts’ protections.”

“I am grateful for my team’s leadership on this matter and taking on predatory lenders who use illegal practices to prey on our most vulnerable residents leaving them with significant debt,” Campbell said in a statement. “We will continue to combat predatory lending in its many forms so that all Massachusetts residents have an opportunity to actually grow wealth.”

Editor’s Note 11:08 a.m., May 22, 2024: This story has been updated with comment from EasyPay