A payday lender that operates almost 1 / 2 of the pawn stores in Ohio really wants to alter state legislation to get rid of competition for the stores and quadruple the amount that bad customers pay money for pawn loans.
Money America, which has Cashland pawn stores, really wants to improve the state limit on pawn loans from 5 per cent a to 20 percent month.
In addition, money America proposes restricting competition for pawn shops. A new pawn shop would be barred from opening within two miles of an existing pawnbroker in large cities like Cleveland, Columbus and Cincinnati.
The majority of Ohio’s 300 pawn licenses take place by mom-and-pop shops. money America, along side its Cashland Financial solutions arm, holds 120 pawnbroker’s licenses. Its next biggest competitor, Lev’s Pawn Shop, has 16.
Independent pawnbrokers want nothing at all to do with the proposition.
However they state Cash America could circumvent their objections — and prevent general public debate — by cramming the modifications into an amendment to Ohio’s gargantuan spending plan bill. Continue reading