FirstCash Announces Settlement of CFPB Litigation Related to Military Lending Act
FirstCash Holdings (Nasdaq: FCFS), a major international pawn store operator with over 3,000 locations, has announced a settlement with the Consumer Financial Protection Bureau (CFPB) regarding alleged Military Lending Act violations.
The settlement includes the introduction of a new pawn lending product for U.S. military members and their families. FirstCash will pay $5-7 million in consumer redress and a $4 million fine to the CFPB victims relief fund. The financial impact will be reflected in Q2 2025 results.
FirstCash Holdings (Nasdaq: FCFS), uno dei principali operatori internazionali nel settore dei pegni con oltre 3.000 punti vendita, ha annunciato un accordo con il Consumer Financial Protection Bureau (CFPB) riguardo presunte violazioni del Military Lending Act.
L'accordo prevede l'introduzione di un nuovo prodotto di prestito su pegno dedicato ai membri delle forze armate statunitensi e alle loro famiglie. FirstCash pagherà un risarcimento ai consumatori tra 5 e 7 milioni di dollari e una multa di 4 milioni di dollari al fondo per il risarcimento delle vittime del CFPB. L'impatto finanziario sarà riflesso nei risultati del secondo trimestre del 2025.
FirstCash Holdings (Nasdaq: FCFS), un importante operador internacional de casas de empeño con más de 3,000 ubicaciones, ha anunciado un acuerdo con la Oficina de Protección Financiera del Consumidor (CFPB) relacionado con supuestas violaciones de la Ley de Préstamos Militares.
El acuerdo incluye la introducción de un nuevo producto de préstamo prendario para miembros militares de EE. UU. y sus familias. FirstCash pagará entre 5 y 7 millones de dólares en compensación a los consumidores y una multa de 4 millones de dólares al fondo de ayuda para víctimas del CFPB. El impacto financiero se reflejará en los resultados del segundo trimestre de 2025.
FirstCash Holdings (나스닥: FCFS)는 3,000개 이상의 지점을 보유한 주요 국제 전당포 운영업체로, 군대 대출법(Military Lending Act) 위반 혐의와 관련해 소비자금융보호국(CFPB)과 합의를 발표했습니다.
이번 합의에는 미국 군인과 그 가족을 위한 새로운 전당 대출 상품 도입이 포함되어 있습니다. FirstCash는 500만~700만 달러의 소비자 보상금과 400만 달러의 벌금을 CFPB 피해자 구제 기금에 지불할 예정입니다. 이 재정적 영향은 2025년 2분기 실적에 반영될 것입니다.
FirstCash Holdings (Nasdaq : FCFS), un important opérateur international de magasins de prêt sur gage avec plus de 3 000 points de vente, a annoncé un accord avec le Consumer Financial Protection Bureau (CFPB) concernant des violations présumées du Military Lending Act.
L'accord prévoit l'introduction d'un nouveau produit de prêt sur gage destiné aux membres de l'armée américaine et à leurs familles. FirstCash versera entre 5 et 7 millions de dollars en indemnisation aux consommateurs ainsi qu'une amende de 4 millions de dollars au fonds d'aide aux victimes du CFPB. L'impact financier sera reflété dans les résultats du deuxième trimestre 2025.
FirstCash Holdings (Nasdaq: FCFS), ein führender internationaler Pfandhausbetreiber mit über 3.000 Standorten, hat eine Einigung mit dem Consumer Financial Protection Bureau (CFPB) bezüglich mutmaßlicher Verstöße gegen das Military Lending Act bekannt gegeben.
Die Einigung beinhaltet die Einführung eines neuen Pfandkreditprodukts für US-Militärangehörige und deren Familien. FirstCash wird 5 bis 7 Millionen US-Dollar an Verbraucherschadensersatz sowie eine 4-Millionen-Dollar-Strafe an den CFPB-Opferhilfefonds zahlen. Die finanziellen Auswirkungen werden in den Ergebnissen des zweiten Quartals 2025 sichtbar sein.
- Settlement resolves ongoing CFPB litigation, removing regulatory uncertainty
- New specialized pawn lending product for military members creates potential market opportunity
- Total settlement cost of $9-11 million is relatively modest given company's size
- Settlement includes $5-7 million in customer redress payments
- Additional $4 million fine to CFPB victims relief fund
- Potential reputational impact from alleged military lending violations
FORT WORTH, Texas, July 11, 2025 (GLOBE NEWSWIRE) -- FirstCash Holdings, Inc. (“FirstCash” or the “Company”) (Nasdaq: FCFS), a leading international operator of over 3,000 retail pawn stores in the U.S. and Latin America, today announced that it has reached a settlement with the Consumer Financial Protection Bureau (“CFPB”) regarding alleged violations of the Military Lending Act.
Rick Wessel, CEO of FirstCash, stated, "We are pleased to have reached this agreement with the CFPB. While we disagree with the CFPB's allegations regarding our military lending practices, we believe that agreeing to this settlement and putting this matter behind us is the best path forward for the Company. We remain committed to best meeting the needs of our customers, including members of the military and their families, and to continue providing excellent service.”
As part of the settlement, which remains subject to final court approval, FirstCash has agreed to offer a new pawn lending product for covered members of the U.S. military and their immediate families and dependents. Additionally, the Company will pay consumer redress in fees or principal returned to affected customers, which is estimated to be between
About FirstCash
FirstCash is a leading international operator of pawn stores focused on serving cash and credit-constrained consumers. FirstCash’s more than 3,000 pawn stores in the U.S. and Latin America buy and sell a wide variety of jewelry, electronics, tools, appliances, sporting goods, musical instruments and other merchandise, and make small non-recourse pawn loans secured by pledged personal property. FirstCash’s pawn segments in the U.S. and Latin America currently account for approximately
FirstCash is a component company in both the Standard & Poor’s MidCap 400 Index® and the Russell 2000 Index®. FirstCash’s common stock (ticker symbol “FCFS”) is traded on the Nasdaq, the creator of the world’s first electronic stock market. For additional information regarding FirstCash and the services it provides, visit FirstCash’s websites located at http://www.firstcash.com and http://www.americanfirstfinance.com.
For further information, please contact:
Gar Jackson
Global IR Group
Phone: (817) 886-6998
Email: gar@globalirgroup.com
Doug Orr, Executive Vice President and Chief Financial Officer
Phone: (817) 258-2650
Email: investorrelations@firstcash.com
Website: investors.firstcash.com
FAQ
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