RICHMOND, Va. (Legal Newsline) — Virginia Attorney General Mark Herring said his office has settled with Pawnking LLC and All Star Pawn & Gold LLC, two affiliated Fredericksburg-area pawnbrokers, for more than $70,000 over alleged violations of the Virginia Consumer Protection Act.
According to allegations, the companies charged illegal interest and fees on loans. To settle the case, Pawnking will provide refunds to 831 borrowers totaling $55,920.30, while All Star will refund 216 borrowers a total of $6,857.49.
Additionally, Pawnking and All Star will pay, respectively, roughly $9,700 and $2,900 for reimbursement of Virginia’s reasonable expenses, costs and attorney fees. The two companies have been permanently enjoined from violating the Virginia Consumer Protection Act and Virginia statutes as they relate to pawnbrokers.
"In recent years we have seen a rash of pawnbrokers around Virginia skirting laws and overcharging consumers," Herring said on March 10. "If you're considering using a pawn shop or other small dollar loan lender, 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."