FCFS - FirstCash stock dips after CFPB files suit on overcharging military families

FirstCash (NASDAQ:FCFS) stock drops 4.4% after the Consumer Financial Protection Bureau files a lawsuit against the pawn shop operator for charging military families more than is allowed under the Military Lending Act. The CFPB also alleges that the company violated a 2013 CFPB order against its predecessor company prohibiting MLA violations. It's seeking an injunction, redress for affected borrowers, and a civil monetary penalty. Suits were filed against FirstCash (FCFS) for charging higher than the allowable 36% annual percentage rate on pawn loans, the CFPB said. Loans the company made to military families frequently exceeded 200%, the agency said. "FirstCash (FCFS) is a repeat offender and cheated military families over and over again," CFPB Director Rohit Chopra said in a statement. FCFS slides 4.4% as seen in early afternoon trading as seen in the graph below. Last month, FirstCash (FCFS) agreed to acquire American First Finance, a POS payments platform for credit-constrained consumers,

For further details see:

FirstCash stock dips after CFPB files suit on overcharging military families