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Consumers who entered into a pawn contract with 505 Quick Cash & Pawn LLC between Feb. 16, 2019, and April 15, 2023, may be eligible to claim at least $20 from a class action settlement.
505 Quick Cash & Pawn LLC agreed to pay $400,000 to resolve a class action lawsuit alleging violations of the New Mexico Pawnbrokers Act. The lawsuit claimed the company’s pawn tickets failed to comply with state law, it charged excessive pawn service fees in some transactions and it did not return surplus proceeds to customers when it sold pawned property for more than the loan balance.
Who are the class members?
The class includes all individuals who entered into the same or a substantially similar pawn contract as the plaintiff, Sean Begaye, with 505 Quick Cash & Pawn LLC, beginning on Feb. 16, 2019.
The class comprises 2,003 unique individuals with 9,328 collective pawn loans during the relevant period. Within this group:
- 2,613 transactions involved allegedly illegal pawn service charges, such as gun fees or improper refinance fees
- 474 class members may be entitled to a return of surplus proceeds from the sale of their forfeited property
- 196 pawn loans involve property still held by the defendant as of the settlement
Some class members may fall into more than one of these categories depending on their transactions.
How much can class members get?
The total amount available for distribution to class members, after deductions for attorneys’ fees, taxes, litigation costs, administration costs and a service award to the plaintiff, is approximately $289,526.75.
Each class member will receive a minimum payment of $20. Some may receive additional compensation if 505 Quick Cash & Pawn:
- Charged them an allegedly illegal pawn service charge (such as a gun fee or an illegal refinance fee)
- Sold their property for more than the balance they owed on their pawn loan (entitling them to a surplus)
Other benefits
In addition to cash payments, the settlement provides:
- Forgiveness of any outstanding pawn loan balances
- Deletion of any negative credit reporting related to these pawn loans
- Forfeiture of unredeemed property 505 Quick Cash & Pawn LLC still holds
No claim form needed to receive payment
Class members do not need to file a claim to receive their settlement payment. The settlement administrator already has the necessary information for all class members. It will automatically mail checks to the address on record unless the class member updates their address online, by mail or by email.
Settlement administrator's mailing address: Begaye v 505 Quick Cash, PO Box 23678, Jacksonville, FL 32241.
Settlement administrator's mailing address: info@begayeclassaction.com
Required documentation
Heirs or beneficiaries of deceased class members will need to provide documentation, such as a death certificate and proof of beneficiary status.
Those who seek a name change must provide a marriage license, divorce decree or court order.
$400,000 settlement fund breakdown
The $400,000 settlement fund includes:
- Settlement administration costs: $17,317
- Attorneys’ fees: $80,000
- Litigation costs: $2,056.25
- Gross receipts tax: $6,100
- Service award to plaintiff: $5,000
- Payments to class members: $289,526.75
If there are funds left over (for example, from checks not cashed within 180 days), the settlement administrator may distribute the remaining funds to class members if economically practical. If not, or if funds remain after a second distribution, it will donate the balance to the New Mexico Center on Law and Poverty as a cy pres award subject to court approval. There is no reversion of unclaimed funds to the defendant.
Important dates
- Exclusion deadline: Aug. 11, 2026
- Final fairness hearing: Sept. 15, 2026
When is the 505 Quick Cash & Pawn LLC settlement payout date?
The settlement administrator will issue payments to class members within 60 days after the court grants final approval of the settlement and the order becomes final.
Why is there a class action settlement?
The class action lawsuit alleged 505 Quick Cash & Pawn LLC violated the New Mexico Pawnbrokers Act by failing to provide proper disclosures on pawn tickets, charging excessive pawn service charges and not returning surplus proceeds from the sale of pawned property.
The company denied all allegations and any liability. The parties agreed to settle to avoid the risks and costs of continued litigation and provide compensation to affected customers.
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