WASHINGTON (Legal Newsline) — The Consumer Financial Protection Bureau (CFPB) announced Feb. 2 that, along with Virginia Attorney General Mark Herring, that it took action against Woodbridge Coins and Jewelry Exchange Inc., doing business as Woodbridge Gold & Pawn, for allegedly deceiving consumers about the actual annual costs of loans.
“Consumers are entitled to know the actual annual cost of a loan,” CFPB Director Richard Cordray said. “Woodbridge Gold & Pawn deceived consumers about those costs, and, with [this] action we are securing relief for consumers who were wronged.”
According to allegations, the defendants issued closed-end loans secured by personal property and charged finance charges on those loans. The CFPB alleges the defendants misled consumers about the cost of the loans by marketing low annual percentage rates but tacking on the fees and the charges without properly disclosing them.
“In recent years we have seen a rash of pawn brokers around Virginia skirting laws and overcharging consumers,” Herring said. “If you’re considering using a pawn shop or another small dollar loan, you should always closely review the terms and know your rights before signing anything that might result in even more money coming out of your pocket.”
To settle the allegations, Woodbridge Gold & Pawn will pay $79,000 in consumer relief and penalties, and stop the alleged deceptive disclosures.