Payday Loan Limits May Cut Abuse but Leave 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 lively downtown arts scene.

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However in banking sectors, it offers gained an even more distinct reputation: Canton is really a nexus of this payday financing industry, for which those that have trouble making ends satisfy 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. At the Advance America store, Martin Munn stopped in recently together with his daughter that is young to their biweekly banking: Nearly every payday, he cashes their check, takes care of their last loan in complete and removes a unique one against his next paycheck. The total amount 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. Continue reading