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Payday loan provider seeks modifications to Ohio pawn legislation to cut competition, raise loan rates

A lender that is payday operates almost 1 / 2 of the pawn shops in Ohio desires to alter state legislation to remove competition because of its stores and quadruple the amount that bad customers buy pawn loans.

Money America, which owns Cashland pawn shops, would like to enhance the state limit on pawn loans from 5 % a to 20 percent month.

In addition, money America proposes restricting competition for pawn stores. In large metropolitan areas like Cleveland, Columbus and Cincinnati, an innovative new pawn store will be banned from starting within two kilometers of a preexisting pawnbroker.

The majority of Ohio’s 300 pawn licenses take place by mom-and-pop shops. Money America, along with its Cashland Financial Services supply, holds 120 pawnbroker’s licenses. Its next biggest competitor, Lev’s Pawn Shop, has 16.

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