Usually viewed as predatory, the check cashing industry is booming. Lisa Servon wondered why people that are lower-income had been struggling would cash checks rather than obtaining a banking account, therefore she took work as being a cashier to learn. just exactly What she discovered — so itвЂ™s usually cheaper — could be the topic of her brand new guide, “The Unbanking of America.” Economics correspondent Paul Solman reports.
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Next: you will need some cash real fast?
Economics correspondent Paul Solman explores why, for a few customers, the bet that is best may possibly not be the financial institution.
It is section of their regular series Making Sense of economic news.
JOE COLEMAN, President, RiteCheck:
And also this is East 138th Street, which in a variety of ways may be the Wall Street regarding the Bronx. You’ve got a complete great deal of economic companies across the road, bodegas. You have got small money remitters.
And there is a pawn store, perhaps perhaps perhaps not the type of financier you’ll find in the real Wall Street. But, hey, this is actually the Southern Bronx, poorest congressional district in America, where some 40 per cent of residents reside underneath the poverty line.
The primary supplier regarding the road is RiteCheck, where we now have our economic solution center.
Joe Coleman is president of the string of 14 shops into the Southern Bronx and Harlem. They are going to cash your checks, spend your bills, transfer cash twenty four hours a time, 365 times per year. Something similar to half these customers are unbanked, meaning no bank is had by them account on function. (more…)