Payday Loan Limits May Cut Abuse but Leave Some Borrowers Searching

Payday Loan Limits May Cut Abuse but Leave Some Borrowers Searching

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

However in banking sectors, it offers gained an even more distinct reputation: Canton is a nexus of this payday lending industry, for which those that have difficulty making ends fulfill from 1 paycheck into 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 with his daughter that is young to their biweekly banking: Nearly every payday, he cashes their check, takes care of their final loan in complete and removes a fresh 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 girl whom manages the shop, Tanya Alazaus, greeted Mr. Munn with a smile. The store seems like a tiny bank branch, with clerks waiting behind counters to manage deals and speak to their regulars. “Payday Loan Limits May Cut Abuse but Leave Some Borrowers Searching” の続きを読む