CFPB and Virginia AG Sue Woodbridge Gold & Pawn

February 2, 2017

On Thursday, February 2, 2017, the CFPB and Virginia Attorney General filed a Truth in Lending Act (TILA) action against Woodbridge Gold & Pawn for allegedly misstating the charges associated with pawn loans. Woodbridge issues closed-end loans secured by personal property and charges consumers a finance charge on their loans, which includes four fees: “maintenance,” “interest,” “storage,” and “clerical.” The CFPB claimed beginning in May 2014 Woodbridge misled its customers about the costs of their loans by disclosing lower annual percentage rates (APRs) not reflective of all fees.  Under the proposed consent order, Woodbridge would be required to pay over $56,000 in restitution to approximately 1,000 consumers, forfeit over $17,000 received from the alleged practices, and pay $5,000 to the Bureau’s Civil Penalty Fund.