Attorney General's News Release

December 12, 2007

Nixon settles with Wright County pawn shop over faulty business practices; consumers to receive $5,050 restitution

Hartville, Mo. — A Mountain Grove pawn shop that allegedly violated state consumer protection laws in the issuance of pawnbroker and unsecured loans will pay $5,050 in consumer restitution and $1,000 in costs and expenses under an agreement with Attorney General Jay Nixon. Nixon’s assurance of voluntary compliance with Sharon Rose Larue and Rachelle Lynn Paccassi of Mountain Grove, who do business as Sharon and Shelly’s Pawn, was filed today in Wright County Circuit Court.

Nixon’s office engaged in an investigation of the defendants’ business practices, and through that inquiry determined that the defendants violated the Missouri Merchandising Practices Act in the following ways:

• Making pawnbroker loans without retaining tangible personal property as pledged goods as required by state law;
• Making pawnbroker loans while failing to make entries in required records in accordance with state law;
• Making unsecured loans of $500 or less without a license;
• Renewing unsecured loans of $500 or less in excess of the number of renewal periods allowed by state law;
• Renewing unsecured loans of $500 or less and failing to reduce the principal as required by state law; and
• Making loans as a title lender without a license in violation of state law.

According to today’s agreement, the defendants must abide by all state consumer protection laws regarding pawnbroker, unsecured and title loans. The defendants are also required to pay $5,050 in consumer restitution, $1,000 in costs of the investigation and enforcement of the case and a civil penalty of $1,000. The civil penalty will be suspended pending the defendants’ compliance for one year with today’s agreement and all local, state and federal laws.

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Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

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