On March 10, Virginia Attorney General Mark Herring announced settlements with two Fredericksburg, Virginia pawnbrokers – Pawnking, LLC and All Star Pawn & Gold, LLC – over allegations the companies charged consumers illegal interest and fees in violation of Virginia's pawnbroker statutes and the Virginia Consumer Protection Act. As part of the settlement, Pawnking and All Star Pawn will provide more than $62,000 in refunds to more than 1,000 consumers.
According to the press release, the settlements include the following:
- Pawnking agrees to offer refunds totaling $55,920.30 to 831 borrowers representing the amounts those borrowers paid beyond what Virginia's pawnbroker statutes allow.
- All Star agrees to offer refunds totaling $6,857.49 to 216 borrowers representing the amounts those borrowers paid beyond what Virginia's pawnbroker statutes allow.
- Pawnking and All Star agree to pay the Attorney General, respectively, approximately $9,700 and $2,900 for reimbursement of the Commonwealth's reasonable expenses, costs, and attorneys' fees.
- A permanent injunction preventing Pawnking and All Star from violating the Virginia Consumer Protection Act and Virginia statutes applicable to pawnbrokers.
The civil settlements are in the form of assurances of voluntary compliance filed for approval with the circuit courts in Spotsylvania and Stafford counties.
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