CANTON, Ohio — This city 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, this has gained a far more distinct reputation: Canton is just a nexus of this payday financing industry, for which those that have difficulty making ends satisfy from a single 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 together with his young child to accomplish 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 quantity he borrows varies, 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 grin.