Item 7.01 Regulation FD Disclosure.
As previously disclosed on November 12, 2021, the Consumer Finance Protection
Bureau (the "CFPB") initiated a civil action in a Texas federal district court
against FirstCash, Inc. (the "Company") and Cash America West, Inc., one of the
Company's subsidiaries, alleging violations of the Military Lending Act ("MLA").
The CFPB also alleges that the Company violated a 2013 CFPB order against its
predecessor company that, among other things, required the company to cease and
desist from further MLA violations. The CFPB is seeking an injunction, redress
for affected borrowers, and a civil money penalty.
The Company intends to vigorously defend against the allegations in this case,
which it understands originated from a single customer complaint from 2019,
which was immediately remediated by the Company. Furthermore, the CFPB has not
provided the Company with any evidence or support for its allegations, including
its allegations that it has discovered approximately 3,600 transactions
involving approximately 1,000 customers that may have violated the MLA. The
CFPB's characterizations of the Company as a repeat offender are also based on
violations committed by a former subsidiary of Cash America that was fully
divested two years before the Company's acquisition of Cash America in 2016.
While the Company remains confident in its policies and procedures to ensure
compliance with the MLA and its defenses to the CFPB's allegations, the Company
does not believe that an adverse outcome of this matter would have a material
adverse impact on its financial condition or its business.
The Company is furnishing the information in this Current Report on Form 8-K to
comply with Regulation FD. Such information shall not be deemed to be "filed"
for purposes of Section 18 of the Securities Exchange Act of 1934, as amended,
or otherwise subject to the liabilities of that section, and shall not be deemed
to be incorporated by reference into any of the Company's filings under the
Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as
amended, whether made before or after the date hereof and regardless of any
general incorporation language in such filings, except to the extent expressly
set forth by specific reference in such a filing.
Forward Looking Information
This Current Report on Form 8-K contains forward-looking statements about the
business, financial condition and prospects of FirstCash, Inc. and its wholly
owned subsidiaries (together, the "Company"). Forward-looking statements, as
that term is defined in the Private Securities Litigation Reform Act of 1995,
can be identified by the use of forward-looking terminology such as "outlook,"
"believes," "projects," "expects," "may," "estimates," "should," "plans,"
"targets," "intends," "could," "would," "anticipates," "potential," "confident,"
"optimistic," or the negative thereof, or other variations thereon, or
comparable terminology, or by discussions of strategy, objectives, estimates,
guidance, expectations and future plans. Forward-looking statements can also be
identified by the fact these statements do not relate strictly to historical or
current matters. Rather, forward-looking statements relate to anticipated or
expected events, activities, trends or results. Because forward-looking
statements relate to matters that have not yet occurred, these statements are
inherently subject to risks and uncertainties.
While the Company believes the expectations reflected in forward-looking
statements are reasonable, there can be no assurances such expectations will
prove to be accurate. Security holders are cautioned such forward-looking
statements involve risks and uncertainties. Certain factors may cause results to
differ materially from those anticipated by the forward-looking statements made
in this Current Report on Form 8-K. Such factors may include, without
limitation, the preliminary nature of the CFPB allegations, the difficulty in
predicting or determining the timing or final outcome of the CFPB matter, or the
effect that any adverse determinations with respect to the lawsuit may have on
the Company's business, financial condition and results of operations, which
effect could be material and include the payment of substantial monetary
damages, and such other factors discussed and described in the Company's most
recent Annual Report on Form 10-K filed with the Securities and Exchange
Commission (the "SEC"), including the risks described in Part 1, Item 1A, "Risk
Factors" thereof, and in the other reports filed subsequently by the Company
with the SEC. Many of these risks and uncertainties are beyond the ability of
the Company to control, nor can the Company predict, in many cases, all of the
risks and uncertainties that could cause its actual results to differ materially
from those indicated by the forward-looking statements. The forward-looking
statements contained in this Current Report on Form 8-K speak only as of the
date of this Current Report on Form 8-K, and the Company expressly disclaims any
obligation or undertaking to report any updates or revisions to any such
statement to reflect any change in the Company's expectations or any change in
events, conditions or circumstances on which any such statement is based, except
as required by law.
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