Chris Carr, Georgia attorney general Chris Carr, Georgia attorney general (Photo: David Alexander Barnes /AJC via AP)

Georgia Attorney General Chris Carr announced Monday a settlement agreement with a title pawn company requiring dismissal of an unnamed number of lawsuits filed against loan holders for failure to repay.

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

Carr said the settlement resolves allegations against Complete Cash Holdings charging that the company engaged in unlawful practices that violated the Georgia Fair Business Practices Act and the Georgia Pawn Shop Act.

Complete Cash owner Kent Popham declined to comment on the settlement.

The Attorney General's Office alleged that, 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. 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. 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, Carr said.

Carr said Complete Cash has entered into a settlement with the Attorney General's Office requiring it to:

• Dismiss all pending lawsuits against consumers in which it attempted to hold them personally liable for principal, interest, fees and/or other costs associated with a pawn transaction;

• Have any judgments entered against such consumers set aside;

• Have any garnishments based on such judgments dismissed;

• Have any writs of fieri facias based on such judgments canceled and recorded;

• Refund to such consumers all amounts that Complete Cash has obtained as a result of its judgments;

• Pay $35,000 in penalties and fees to the state;

• Fully comply with the Georgia Fair Business Practices Act.

Should the company violate any terms of the settlement between now and Dec. 1, 2020, it must pay the state an additional $35,000, Carr said.