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.
However in banking sectors, it’s gained a far more distinct reputation: Canton is a nexus of this payday financing industry, by which individuals who have difficulty making ends fulfill from a single paycheck towards the next sign up for 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 stable audience of clients. At the Advance America store, Martin Munn stopped in recently together with his young child to complete their biweekly banking: Nearly every payday, he cashes their check, takes care of their final loan in complete and removes a unique 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 % yearly interest.
The girl whom manages the shop, Tanya Alazaus, greeted Mr. Munn with a smile. The store seems like a bank that is small, with clerks waiting behind counters to undertake deals and talk to their regulars. Mrs. Alazaus views by herself as being a regional family members vendor.
But regulators that are federal her and organizations like Advance America quite differently: as an element of a predatory industry that is ripe for reform and a crackdown. Read More