Virginia AG Sues and Settles With Another Pawnbroker Over Illegal Interest Rates and Fees

State AGs

On September 11, the Attorney General for the Commonwealth of Virginia (Virginia AG) announced the simultaneous filing of a Complaint and an Assurance of Voluntary Compliance in Prince William County Circuit Court against a Virginia-based pawn broker that allegedly charged excessive interest rates and fees on small-dollar loans.

The Virginia AG alleged that the interest and fees on the loans secured by consumers’ personal property violated Virginia pawnbroker statutes and the Virginia Consumer Protection Act (VCPA), Va. Code Ann. § 59.1-196, et seq.  Under the terms of the Assurance of Voluntary Compliance, the pawnbroker agreed to refund over $41,500 to 638 consumers, equal to the amounts those consumers paid beyond what Virginia’s consumer protection statutes allow.  The pawnbroker also agreed to pay $5,000 to the Virginia AG for attorneys’ fees and costs.  The agreement includes a permanent injunction prohibiting future violations of the VCPA and related statutes.

The CFPB filed an action against the same pawnbroker in December 2016.  Enforcement Watch has covered other similar actions brought by the Virginia AG in, for example, August 2017July 2017May 2017February 2017.

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