AG: settlement reached on unlawful practices accusation

A title pawn company with multiple locations in Rome and Northwest Georgia has entered into a settlement with the state in response to allegations the company engaged in unlawful practices violated the Georgia Fair Business Practices Act and the Georgia Pawn Shop Act, according to a press release from Attorney General Chris Carr’s office.

“Consumers who seek out title pawns are already in financial straits,” said Carr said in the release. “Our office is committed to protecting vulnerable consumers from companies that try to take advantage of them through illegal actions.”

Carr announced the settlement between the state and Complete Cash Holdings LLC and its owner Kent Popham on Monday.

A title pawn is essentially a short-term, high interest rate pawn transaction that uses the clear title on a consumer’s vehicle as collateral, the release stated. If a consumer defaults on his or her payments, the title pawn company’s only legal recourse is to require the consumer to turn over the car, or repossess it if the consumer refuses to do so voluntarily.

The state claimed when some of Complete Cash’s customers defaulted on their loans, the company sued them for the outstanding principal, interest and fees, which is not allowed in pawn transactions.

The settlement stipulated the company must dismiss all pending lawsuits against consumers in which the company held them liable for principal, fees or interest as well as have any prior judgments and garnishes dismissed.

The company also must refund all amounts they obtained as a result of a judgment and pay $35,000 in penalties and fees to the state. If the company violates any terms of the settlement between now and Dec. 1, 2020 it must pay an additional $35,000.