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 town of 73,000 is renowned for a few 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 really a nexus of this payday financing industry, for which those who have difficulty making ends fulfill in one paycheck into the next remove high-interest loans from specialty loan providers.

On 30th Street, a half-dozen payday lending outlets encircle a popular shopping mall, and also at lunchtime they draw a reliable audience of customers. 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, takes care of their final loan in complete and takes out a brand new one against their next paycheck. The quantity he borrows differs, however it is typically around $500, which is why he will pay a charge of $73 — a 380 % interest rate that is annual. Read more