FirstCash announces settlement of CFPB litigation

FirstCash (FCFS) Holdings announced that it has reached a settlement with the Consumer Financial Protection Bureau regarding alleged violations of the Military Lending Act. Rick Wessel, CEO of FirstCash, stated, “We are pleased to have reached this agreement with the CFPB. While we disagree with the CFPB’s allegations regarding our military lending practices, we believe that agreeing to this settlement and putting this matter behind us is the best path forward for the Company. We remain committed to best meeting the needs of our customers, including members of the military and their families, and to continue providing excellent service.” As part of the settlement, which remains subject to final court approval, FirstCash has agreed to offer a new pawn lending product for covered members of the U.S. military and their immediate families and dependents. Additionally, the company will pay consumer redress in fees or principal returned to affected customers, which is estimated to be between $5M and $7M, and a $4M fine to the CFPB victims relief fund. The financial impact of the settlement will be reflected in the company’s GAAP financial results for the second quarter of 2025.