U.S. military families are being socked with annual interest rates sometimes exceeding 200% on pawn loans they’ve taken out from a Texas company, a violation of a federal law that caps how much lenders can charge, a government financial watchdog alleged in a lawsuit Friday.
The Consumer Financial Protection Bureau, or CFPB, filed the complaint in the U.S. District Court for Northern Texas in Fort Worth. The CFPB lawsuit accuses Cash America West and FirstCash of disobeying the Military Lending Act, which limits the annual interest rate on a loan for military personnel or their family to 36%.
Read the full story at CBS News here.