FirstCash Announces Settlement of CFPB Litigation Related to Military Lending Act

Rhea-AI Summary

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.

Positive

• 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

Negative

• 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 $5 million and $7 million, and a $4 million fine to the CFPB victims relief fund. The financial impact of the settlement will be reflected in the Company’s GAAP financial results for the second quarter of 2025.

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 80% of annualized segment earnings, with the remainder provided by its wholly owned subsidiary, AFF, which provides lease-to-own and retail finance payment solutions for consumer goods and services.

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

What is the total financial impact of FirstCash's (FCFS) CFPB settlement?

The total financial impact is between $9-11 million, comprising $5-7 million in consumer redress and a $4 million fine to the CFPB victims relief fund.

When will the CFPB settlement impact FirstCash's financial results?

The financial impact of the settlement will be reflected in FirstCash's GAAP financial results for the second quarter of 2025.

What changes is FirstCash (FCFS) making for military customers?

FirstCash will offer a new pawn lending product specifically designed for covered members of the U.S. military, their immediate families, and dependents.

How many retail locations does FirstCash operate?

FirstCash operates over 3,000 retail pawn stores across the U.S. and Latin America.

What were the CFPB's allegations against FirstCash?

The CFPB alleged violations of the Military Lending Act regarding FirstCash's lending practices to military members, though the company disagreed with these allegations.