Consumer Finance Insights
August 4, 2017

Virginia AG Settles with Local Small Dollar Lender Over Excessive Fees

On August 1, 2017, the Virginia Attorney General’s Office (AG) announced​ that it had entered into a consent order with a state pawnbroker, settling allegations that the company overcharged consumers and was “skirting laws.”

According to the AG, the company was in the business of offering consumers small dollar loans in exchange for the consumer’s personal property, which was held by the company as security for the loan.  In June 2016, the AG filed a complaint against the company claiming that it had charged excessive interest rates and fees in violation of Virginia Consumer Protection Act.  According to the AG, approximately 651 borrowers were affected by the excessive loan fees.

As part of the settlement, the company agreed to refund $27,731.88 to affected consumers and agreed to pay an additional $6,226.85 to the AG as reimbursement for its costs and expenses in bringing the action.  On top of the monetary judgments, the settlement also permanently enjoined the company from violating Virginia pawnbroker statutes and consumer protection laws in the future.