FirstCash settles with CFPB over Military Lending Act violations, agreeing to provide new military lending products and financial redress.
Quiver AI Summary
FirstCash Holdings, Inc. announced it has settled with the Consumer Financial Protection Bureau (CFPB) over alleged violations of the Military Lending Act. CEO Rick Wessel expressed satisfaction with the settlement, stating that it allows the company to move forward despite disagreeing with the CFPB's claims. As part of the agreement, which awaits final court approval, FirstCash will introduce a new pawn lending product for military personnel and their families, and will provide consumer redress estimated between $5 million and $7 million, alongside a $4 million fine to the CFPB victims relief fund. The financial effects of this settlement will be reflected in the company's second quarter 2025 results.
Potential Positives
- FirstCash has reached a settlement with the CFPB, which may help to restore customer trust and address regulatory concerns surrounding its military lending practices.
- The company is introducing a new pawn lending product specifically for military members and their families, which demonstrates its commitment to serving this customer segment.
- The financial impact of the settlement, while significant, allows the company to move forward with a clearer focus on its business and customer service.
- FirstCash's acknowledgment of the need for consumer redress highlights its commitment to customer satisfaction and compliance with regulations.
Potential Negatives
- Settlement implies acknowledgment of past compliance issues with military lending practices, potentially damaging the company's reputation.
- Financial impact of $9-$11 million from the settlement could affect short-term earnings and investor confidence.
- Dependence on court approval for the settlement creates uncertainty that may lead to negative investor perceptions.
FAQ
What settlement did FirstCash reach with the CFPB?
FirstCash reached a settlement regarding alleged violations of the Military Lending Act, which includes new lending products for military members.
What are the financial terms of the FirstCash settlement?
FirstCash will pay between $5 million and $7 million in consumer redress and a $4 million fine to the CFPB victims relief fund.
How does the settlement affect FirstCash's financial results?
The financial impact will be reflected in the Company’s GAAP financial results for the second quarter of 2025.
What commitment has FirstCash made to military members?
FirstCash is committed to providing new pawn lending products specifically designed for members of the military and their families.
How many pawn stores does FirstCash operate?
FirstCash operates over 3,000 retail pawn stores across the U.S. and Latin America.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$FCFS Insider Trading Activity
$FCFS insiders have traded $FCFS stock on the open market 5 times in the past 6 months. Of those trades, 0 have been purchases and 5 have been sales.
Here’s a breakdown of recent trading of $FCFS stock by insiders over the last 6 months:
- DOUGLAS RICHARD RIPPEL sold 300,000 shares for an estimated $34,029,000
- R DOUGLAS ORR (EVP & Chief Financial Officer) has made 0 purchases and 3 sales selling 6,000 shares for an estimated $680,120.
- HOWARD F HAMBLETON (AFF President) sold 3,900 shares for an estimated $510,627
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$FCFS Hedge Fund Activity
We have seen 174 institutional investors add shares of $FCFS stock to their portfolio, and 149 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- FMR LLC added 731,682 shares (+12.7%) to their portfolio in Q1 2025, for an estimated $88,035,978
- HOOD RIVER CAPITAL MANAGEMENT LLC added 428,594 shares (+inf%) to their portfolio in Q1 2025, for an estimated $51,568,430
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- BANK OF AMERICA CORP /DE/ added 132,562 shares (+12.5%) to their portfolio in Q1 2025, for an estimated $15,949,859
- JPMORGAN CHASE & CO removed 117,466 shares (-43.7%) from their portfolio in Q1 2025, for an estimated $14,133,509
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$FCFS Analyst Ratings
Wall Street analysts have issued reports on $FCFS in the last several months. We have seen 1 firms issue buy ratings on the stock, and 0 firms issue sell ratings.
Here are some recent analyst ratings:
- Stephens & Co. issued a "Overweight" rating on 02/19/2025
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Full Release
FORT WORTH, Texas, July 11, 2025 (GLOBE NEWSWIRE) -- FirstCash Holdings, Inc. (“FirstCash” or the “Company”) (Nasdaq: FCFS), a leading international operator of over 3,000 retail pawn stores in the U.S. and Latin America, today announced that it has reached a settlement with the Consumer Financial Protection Bureau (“CFPB”) 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 $5 million and $7 million, and a $4 million 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.
About FirstCash
FirstCash is a leading international operator of pawn stores focused on serving cash and credit-constrained consumers. FirstCash’s more than 3,000 pawn stores in the U.S. and Latin America buy and sell a wide variety of jewelry, electronics, tools, appliances, sporting goods, musical instruments and other merchandise, and make small non-recourse pawn loans secured by pledged personal property. FirstCash’s pawn segments in the U.S. and Latin America currently account for approximately 80% of annualized segment earnings, with the remainder provided by its wholly owned subsidiary, AFF, which provides lease-to-own and retail finance payment solutions for consumer goods and services.
FirstCash is a component company in both the Standard & Poor’s MidCap 400 Index® and the Russell 2000 Index® . FirstCash’s common stock (ticker symbol “ FCFS ”) is traded on the Nasdaq, the creator of the world’s first electronic stock market. For additional information regarding FirstCash and the services it provides, visit FirstCash’s websites located at http://www.firstcash.com and http://www.americanfirstfinance.com .
For further information, please contact:
Gar Jackson
Global IR Group
Phone: (817) 886-6998
Email:
[email protected]
Doug Orr, Executive Vice President and Chief Financial Officer
Phone: (817) 258-2650
Email:
[email protected]
Website:
investors.firstcash.com
