Cash Pay Advance

That rate would amount to an annual percentage rate of 391 percent, but the Ohio Association of Financial Service Centers, which represents the lenders, said they’re not annual loans, they’re two-week loans, and the loans are made at a simple 15 percent rate. A study by the Housing Research & Advocacy Center and Policy Matters Ohio found that the number of payday lending locations in Ohio and nationwide multiplied 14 times in the past decade. Based on information from the state Department of Commerce, the study found the number of payday lending stores licensed in Ohio went from 107 in 1996 to 1,562 in 2006. Only 22 percent of the lenders are in lower income areas there, and Lake has no areas the census bureau describes as 50 percent African-American. In Cuyahoga County, almost 32 percent of the stores are in African-American neighborhoods, and in Cuyahoga and Franklin counties, 47 percent are in lower income neighborhoods. The service fee of 15% is small when no alternative is available for whatever reason - lack of income, bad credit scores (not taken into consideration by payday lenders), no credit card or other financial difficulties. Find Out More

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