Spotsylvania Pawnbroker Settles Attorney General Overcost Case | Economic news
Spotsylvania County pawnbroker reached agreement with Virginia attorney general’s office to resolve allegations the company was charging interest and illegal fees in violation of the Virginia Pawnbrokers and Virginia Consumer Protection bylaws Act.
Attorney General Mark Herring announced Tuesday that Spotsylvania Gold & Pawn Inc. will provide approximately $ 37,000 in refunds to more than 1,400 consumers.
The store was one of three the US Consumer Financial Protection Bureau accused late last year of misleading customers about the costs of their loans.
According to the attorney general’s office, the recent settlement is a related but separate case, based on allegations that the company was charging excessive fees in violation of state law.
The CFPB case is still pending and is based on how the fees were disclosed in the company’s contracts, based on the federal Truth in Lending Act.
“Pawn shops across the Commonwealth are circumventing laws and overcharging consumers, and I will not stop going after those who take advantage of Virginians,” Herring said in a press release. “I encourage Virginians who are considering going with a pawnshop or other low-cost lender to take a close look at the terms and know their rights before signing anything that might bring out even more money.” hard earned out of their pockets. ”