FirstCash Holdings announced it has reached a settlement with the Consumer Financial Protection Bureau (CFPB) concerning alleged violations of the Military Lending Act. The company stated it disagrees with the CFPB's allegations but believes the settlement is the best path forward.
As part of the agreement, FirstCash will offer a new pawn lending product specifically for covered members of the U.S. military and their immediate families and dependents. The settlement also requires the company to pay consumer redress, estimated to be between $5 million and $7 million, to affected customers.
Additionally, FirstCash will pay a $4 million fine to the CFPB victims relief fund. The total financial impact of the settlement, ranging from $9 million to $11 million, will be reflected in the company’s GAAP financial results for the second quarter of 2025.
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