Virginia AG reaches settlement with pawnbroker

On May 9, 2017, Virginia’s Attorney General reached a settlement with Spotsylvania Gold & Pawn, Inc. to provide approximately $37,000 in refunds to over 1,400 consumers to resolve allegations that the Virginia-based pawnbroker charged illegal interest and fees.

Under the terms of the settlement Spotsylvania Gold & Pawn must refund $36,916.60 to more than 1,400 borrowers. The restitution represents the amounts borrowers paid beyond what Virginia’s pawnbroker statutes allow. Spotsylvania Gold & Pawn must also reimburse the Commonwealth of Virginia for expenses, costs, and attorney’s fees. In addition, Spotsylvania agreed to a permanent injunction which prevents the pawnbroker from violating the Virginia statutes applicable to pawnbrokers and the Virginia Consumer Protection Act.

Last December, the CFPB filed a lawsuit against Spotsylvania Gold & Pawn alleging that the company broke the law by misstating the actual annual costs of its pawn loans. The court entered a Stipulated Final Judgment and Order on March 20, 2017, which ordered Spotsylvania Gold & Pawn to pay $20,209 in disgorgement and a $7,500 civil money penalty.

Tags: Pawn Loans, State AGs

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