Part of the consumer dispute playbook.
CFPB Settles 2021 Military Lending Act Lawsuit Against Pawnshop Lender FirstCash
A federal lawsuit the CFPB filed against pawnshop operator FirstCash, Inc. and nineteen related companies — charging them with violating protections for active-duty servicemembers — has ended in a settlement. The parties jointly submitted a stipulated final judgment to the court on July 11, 2025, which still requires a judge's approval to take effect.
What this means for you
The Military Lending Act caps interest rates and restricts certain loan terms for active-duty servicemembers and their dependents. When a lender is charged with violating those rules, a settlement can result in refunds, civil penalties, or required changes to lending practices. Consumers in this situation — particularly military families who took out pawn loans during the period covered by the suit — often benefit from monitoring official CFPB announcements for details on any relief program. The CFPB maintains a public database of enforcement actions where consumers can track the status of cases like this one.
The facts
- The CFPB originally filed its lawsuit against FirstCash, Inc. and nineteen subsidiaries in November 2021, alleging violations of the Military Lending Act.per the CFPB Newsroom · as of July 11, 2025
- The parties jointly submitted a stipulated final judgment and proposed order on July 11, 2025; the settlement does not take effect until a court enters the order.per the CFPB Newsroom · as of July 11, 2025
- The Military Lending Act limits the annual percentage rate on most consumer credit to active-duty servicemembers and their dependents to 36 percent.per the CFPB · as of July 11, 2025
- FirstCash, Inc. operates a chain of pawnshops across the United States; the lawsuit alleged the company extended covered loans to servicemembers without complying with required MLA protections.according to the CFPB filing · as of July 11, 2025
What you can do
Keeping dated records of any loan agreements, payment receipts, and disclosures helps if questions later arise about the terms you were offered. Servicemembers and their dependents can check MLA protections through the Department of Defense's MLA resource page and can submit complaints to the CFPB at consumerfinance.gov/complaint. Watching the CFPB's enforcement-action page for the final court order will clarify whether a consumer relief program is established and how to apply.
Common questions
What is the CFPB's Military Lending Act case against FirstCash about?
The CFPB sued FirstCash, Inc. and related companies in 2021, alleging they extended pawn loans to active-duty servicemembers without following the protections required by the Military Lending Act. Those protections include a 36-percent interest-rate cap and mandatory disclosures. The case has now reached a proposed settlement, though a federal court must still approve the final order.
Does the FirstCash settlement mean affected servicemembers will receive money?
The proposed order has not yet been entered by the court, so the full terms — including any consumer relief — are not yet final. Consumers who believe they may be affected should monitor the CFPB's enforcement-action page and file a complaint with the CFPB if they have unresolved concerns about their loans.