A new day for local short-term lender

STEUBENVILLE - When Ohio passed House Bill 545 a few years ago, the payday loan industry responded with fears its business was being legislated out of existence.

In some ways it was, but in others, new kinds of services were put in place to provide cash advances to people in need of quick money until payday.

Cashland, 2136 Sunset Blvd., celebrated a grand re-opening on Friday, which includes a grand re-positioning of its services to the market.

The law, passed in 2008, set a 28 percent cap on interest rates that could be charged on short-term loans as well as setting limits on the number of loans a borrower could receive.

The industry responsed by changing its position, with new loan agreement provisions but also the inclusion of new services.

Joann Doyle, Cashland market manager, said that meant for the regional firm, a pawn-shop approach was taken, but far more upscale than the stereotypical pawn shows.

"Here, we have the addition of Pawn Light. We buy and sell small electronics and jewelry and make loans on the items," she said.

The Steubenville Cashland store has a line of everything from musical instruments, including drumsets, guitars and keyboards; to jewelry, computers, home theater sound systems, TVs, DVD players, laptop computers, cameras, MP3 players and more. There are video games and video game systems and shelves of DVDs of popular movies for sale.

Items are in clearly market displays and display cases.

Doyle said there are 10 Cashland stores with the pawn shops in Ohio, with 20 to 30 more planned for next year.

There is a 30-day return policy on items purchased.

Doyle said terms are such that there is a realistic chance for the person pawning an item to be able to buy it back.

She explained the interest rate is 5 percent on $100 plus a $4 service charge for month on pawned items.

She noted in West Virginia, pawn stores can charge up to 20 percent interest.

"There is a definite advantage with the smaller interest rate. It gives the person the abilitiy to come back and get their merchandise. We are here to help them through a tough time, which happens, especially given the economy now," she said.

(Giannamore's e-mail address is pgiannamore@heraldstaronline.com.)