Payday Loan Limits May Cut Abuse but Keep Some Borrowers Searching

Payday Loan Limits May Cut Abuse but Keep Some Borrowers Searching

CANTON, Ohio — This city of 73,000 is famous for some things — the Pro Football Hall of Fame, the presidential collection of William McKinley, a lively downtown arts scene.

However in banking sectors, this has gained an even more reputation that is distinct Canton is a nexus of this payday financing industry, by which individuals who have difficulty making ends satisfy in one paycheck to the next remove high-interest loans from specialty loan providers.

A half-dozen payday lending outlets surround a popular shopping center, and at lunchtime they draw a steady crowd of customers on 30th Street. During the Advance America store, Martin Munn stopped in recently together with daughter that is young to their biweekly banking: Nearly every payday, he cashes their check, pays off their final loan in complete and removes a fresh one against their next paycheck. The quantity he borrows differs, however it is typically around $500, which is why he will pay a cost of $73 — a 380 % interest rate that is annual.

The lady whom manages the shop, Tanya Alazaus, greeted Mr. Munn with a smile. The store seems like a bank that is small, with clerks waiting behind counters to carry out deals and speak to their regulars. Mrs. Alazaus views by by herself being a family merchant that is local. (mais…)

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