The unpretentious city of Cleveland, Tenn., in the foothills of the Great Smoky Mountains seems an unlikely epicenter for a $50-billion-a-year financial industry with its quaint downtown and tree-lined streets.
But that is where W. Allan Jones founded look at money, the granddaddy of contemporary payday lenders, which appeal to an incredible number of financially strapped working people with short-term loans — at annualized interest levels of 459%.
вЂњItвЂ™s the craziest company,вЂќ said Jones, 55, a genial homegrown tycoon who founded their independently held business in 1993. вЂњConsumers love us, but customer teams hate us.вЂќ
Now, with a driverвЂ™s permit, a pay stub and a bank account, they can head into a typical pay day loan store, postdate a look for $300 and stroll down with $255 in money following a $45 charge.
No muss, no hassle, no credit check.
People in the us now pay just as much as $8 billion a 12 months to borrow at the least $50 billion from payday loan providers, by different quotes.
ThatвЂ™s significantly more than 10 times the degree of about ten years ago, based on a report because of the Ca Department of Corporations. The report said in California alone, customers now borrow about $2.5 billion a year from payday lenders.