DOLLAR FINANCIAL, the American pawnbroker and money lender, has confirmed it has acquired four new stores in the North.

In a move which underlines the current economic climate in the North, the US company said it paid approximately £500,000 for the stores, including £160,000 for the loan book.

The Nasdaq-listed group has refused to disclose any details about the four outlets except their location. Three of the stores are based in Belfast while the fourth is located in Lisburn.

Dollar Financial has been operating under the name Money Shop in Northern Ireland since 2006. The stores offer cheque cashing, short-term consumer loans and other credit-related services.

The group currently has 327 financial services stores in the UK, four of which are in the North before the latest purchase.

Jeff Weiss, chairman of Dollar Financial, said the group intended to grow its business in Northern Ireland. “The acquisition of these stores provides an opportunity to further expand and strengthen our store footprint in Belfast.

“All four stores occupy prime locations with strong local customer demographics for our products and services, which should serve to further strengthen our strong brand awareness in that market. We intend to incorporate our entire product suite in these stores, including Western Union money transfer, foreign exchange, debit cards, and other products and services, as well as extend our internet lending and secured pawn lending options to these customers.”

Latest financial accounts show Dollar Financial has enjoyed strong business growth across its UK division in 2009.

The group said this reflects growing demand for its loan products in the UK and “strong growth” in the pawn business which “primarily consists of loans on collateralised gold jewellery.”

The Citizens Advice Bureau, the largest anti-poverty advice charity in Northern Ireland, said it was becoming increasingly concerned that financially vulnerable people were turning to more expensive forms of credit.

Scott Kennerley, money advice project manager with the Citizens Advice Bureau said: “During 2008 and 2009, we have seen a considerable increase in the number of clients contacting us with financial difficulties especially related to debt.

“We have found that as mainstream sources of credit contract it gives some businesses the opportunity to exploit the situation. People in financial difficulties still have to find a source of credit and they are forced to turn to more expensive options such as doorstep loans, pay day loans and pawnbrokers.”