(Reuters) -The U.S. Consumer Financial Protections Bureau has reached a settlement with pawn shop chain owner FirstCash (NASDAQ: FCFS ) Inc and its subsidiaries for alleged violations of the Military Lending Act, the consumer watchdog agency said Friday.

Under the settlement agreement, which requires court approval, FirstCash would "set aside $5 million to ensure full redress to harmed servicemembers and their family members in connection with thousands of unlawful pawn loans," the CFPB said in a statement.

FirstCash would also pay a $4 million fine and comply with the Military Lending Act, the CFPB said.