CANTON, Ohio вЂ” This town of 73,000 is well known for some things вЂ” the Pro Football Hall of Fame, the presidential library of William McKinley, a lively downtown arts scene.
However in banking groups, this has gained an even more distinct reputation: Canton is a nexus of this payday financing industry, by which those that have difficulty making ends fulfill from 1 paycheck into 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. During 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 his final 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 вЂ” a 380 per cent interest rate that is annual.
The lady whom manages the shop, Tanya Alazaus, greeted Mr. Munn with a grin. The store seems like a tiny bank branch, with clerks waiting behind counters to take care of deals and talk to their regulars. Mrs. Alazaus views by herself as being a neighborhood household vendor.