Payday Loan Limits May Cut Abuse but Keep Some Borrowers Searching
CANTON, Ohio — This town of 73,000 is renowned for some things — the Pro Football Hall of Fame, the presidential collection of William McKinley, a downtown that is lively scene.
However in banking groups, it offers gained a far more distinct reputation: Canton is a nexus of the payday financing industry, by which those who have difficulty making ends fulfill in one paycheck towards the next sign up for 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. In the Advance America store, Martin Munn stopped in recently along with his young child to complete his biweekly banking: Nearly every payday, he cashes their check, takes care of their final loan in complete and removes a brand new one against their next paycheck. The total amount he borrows differs, however it is typically around $500, which is why he will pay a charge of $73 — a 380 per cent yearly interest.
The lady whom manages the store, Tanya Alazaus, greeted Mr. Munn with a grin. The shop seems like a little bank branch, with clerks waiting behind counters to manage deals and talk to their regulars. […]