On May 30, the CFPB and a national pawn store operator filed a joint status report in the U.S. District Court for the Northern District of Texas announcing that they have reached an agreement to resolve a 2021 Bureau lawsuit alleging violations of the Military Lending Act (MLA) and a 2013 CFPB consent order. The suit alleged that the pawn store operator and its subsidiary issued thousands of high-interest loans to active-duty servicemembers and their families in violation of federal law.

In its complaint, the CFPB alleges that the company: • Charged servicemembers unlawful interest rates. The company allegedly made over 3,600 pawn loans to covered borrowers with MAPRs exceeding the MLA’s 36% cap, in some cases reaching over 200%. • Imposed prohibited arbitration clauses. Loan agreemen

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