Policy: Law

Va. pawnbroker settles auto title loan violations

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Local,Virginia,Law,Settlements

RICHMOND, Va. (AP) — A Fredericksburg-area pawnbroker has agreed to give refunds as part of a settlement of state motor vehicle title loan violations.

Attorney General Mark Herring announced the settlement with Liberty Pawnshop & Gold, LLC on Tuesday in a news release.

Herring says Liberty made at least 54 motor vehicle title loans without a state license between Aug. 8, 2011, and Feb. 23, 2013. The company's interest charges also violated the law.

The settlement prohibits Liberty from charging interest of more than 12 percent annually on consumer loans, unless the interest is otherwise allowed by law. The company also is barred from repossessing any motor vehicles used to secure the illegal loans.

Herring says Liberty cooperated with the investigation.

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