On July 11, the CFPB announced its proposed final judgment and order against an operator of retail pawnshops that allegedly made loans to active-duty servicemembers and their dependents at a rate greater than allowed by the Military Lending Act (MLA). Under the terms of the order, the defendants agreed, without admitting or denying the allegations, to pay $5 million in a segregated account to provide redress to affected consumers and to pay a $4 million civil money penalty to the CFPB.
As previously covered by InfoBytes, the CFPB first sued the lender in November 2021. Despite dropping multiple cases, the CFPB announced it would proceed in this case (covered here), and obtained a stay to continue settlement discussions (covered here).
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