Commonwealth of Virginia
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ATTORNEY GENERAL HERRING SUES FREDERICKSBURG PAWNSHOP FOR ILLEGAL LOANS
~ B & B Pawnbrokers allegedly engaged in predatory lending practices; AG Herring seeks consumer restitution ~
RICHMOND, VA (July 21, 2015) - Attorney General Mark R. Herring today filed a lawsuit against Fredericksburg-based B&B Pawnbrokers, Inc., for making illegal, unlicensed motor vehicle title loans, and for charging excessive fees in connection with the company's pawnbroker loans. This is part of Attorney General Herring's revitalization of his consumer protection division and commitment to combat predatory lending.
"Virginia cannot and will not be a haven for predatory lending and we're working hard to fight against bad actors who seek to take advantage of Virginia consumers," said Attorney General Mark R. Herring."Enforcement actions like this send a strong message to predatory lenders, letting them know that when they break the law, there are consequences, especially when they are profiting off the backs of working families."
In his lawsuit, Attorney General Herring alleges that B&B Pawnbrokers has violated Virginia law by:
- Making title loans without a license between 2010 and the present
- Charging an illegal 10% monthly "processing fee" on all pawnbroker loans
- Exceeding state limits on allowable interest rates and other charges
The lawsuit was filed today in Richmond City Circuit Court. Attorney General Herring is seeking restitution on behalf of consumers, civil penalties, attorneys' fees, and asking the court to ban B&B from further violating the motor vehicle title loan statutes, the pawnbroker statutes, the state's consumer finance statutes, and the Virginia Consumer Protection Act. The Commonwealth is represented in this matter by Assistant Attorney General Mark Kubiak, and by Senior Assistant Attorney General David Irvin.
Attorney General Herring announced in March that his office will be developing strategies to combat predatory lending that ensnares thousands of Virginians each year in a cycle of debt. This is part of his efforts to revitalize his Consumer Protection Section. The Consumer Protection Section helps educate Virginians about fraud and accepts consumer complaints regarding a variety of issues. Virginians may contact the Office to get information on scams or threats, or to file a complaint.
Visit our website:
www.ag.virginia.gov or call 1-800-552-9963 in Virginia or (804) 786-2042 if calling from the Richmond area.