On July 11, 2025, the CFPB and FirstCash, Inc., along with its nineteen subsidiaries, resolved the November 12, 2021 lawsuit alleging FirstCash of violations of the Military Lending Act (MLA). The parties jointly filed a stipulated final judgment and proposed order, which the court promptly entered the same day.
FirstCash, Inc. is a Delaware nonbank corporation that owns and operates over 1,000 retail pawnshops, offering pawn loans through its wholly owned corporate subsidiaries. The CFPB alleged that FirstCash violated the MLA by making pawn loans to borrowers covered under the MLA with rates that exceeded the MLA’s maximum allowable annual percentage rate of 36%. In addition, it was alleged that the loan agreements with covered borrowers violated the MLA by requiring arbitration in the case of a dispute and by failing to make all required loan disclosures.
The parties reached a settlement which requires FirstCash to:
Set aside $5 million to ensure full redress to harmed servicemembers;
Pay a $4 million fine to the CFPB’s victims relief fund; and
Comply with the MLA and either offer an MLA-compliant loan product to servicemembers and their families or comply with a regulatory safe harbor meant to screen for MLA-protected borrowers.
Read the CFPB’s press release here.
The order can be found here.
