Why Do People Go To Those "Checks Cashed Here" Businesses?

[arwalden]

For the outrageous fees they charge, wouldn't it be easier to just open a basic checking account somewhere?

Are these businesses taking advantage of people, or just providing a legal and desired service... and filling a market niche?

[pagerbear]

1. You need ID documents to open bank accounts these days.

Some folks don't have 'em. Usually folks who can't afford those high fees.

[Lydia Leftcoast]

2. Banks don't want accounts from poor people

and especially not from those who have no permanent address.

At many banks, the lower your balance, the higher your fees. And heaven forbid that you should overdraw--it's $35 per check from your bank and perhaps a further penalty from the business you wrote the check to ! No overdraft protection without a good credit rating.

In addition, banks don't like to open branches in poor neighborhoods.

Under those circumstances, a check cashing service seems like a reasonable alternative.

[GOPisEvil]

3. Those places prey on immigrant communities.

Those that are undocumented cannot open a bank account as they do not have the required identification. So, they get paid squat AND screwed for cashing their checks (those that aren't paid cash, of course).

[Ariana Celeste]

4. For awhile, my SO went to those.

As far as he was concerned, the outrageous fees were alright, because he hates banks. Eventually though, he broke down and got a checking account, so that we could buy crap off the internets. And he's come to realize that as long as he is responsible and pays attention to how much money he has in the bank, he doesn't have to deal with outrageous bank fees- which is why he hated banks.

[bertha katzenengel]

5. They're unaware of their options or intimdated by the thought of going

into a bank. And they're desperate for cash.

IINM most of these places' customers are the ground-down poor, I mean really poor. Tenament dwellers who are barely making it -- or NOT making it.

As far as the businesses themselves -- they're taking advantage, IMO. But then, where else would such people with checks to cash go?

[WilmywoodNCparalegal]

6. FYI... re getting bank accounts

even if someone is not eligible for a SSN due to immigration status, one can still get a federal tax ID through the IRS which is perfectly acceptable to open bank accounts.

[jane_pippin]

7. Because if you don't have a bank account you often have to

They may as well call it "The Bend Over and Contemplate Your Bullshit Paycheck While We Ream You With Our Fees Place"

It sucks. It is a desired service, but I think they do take advantage.

Rent-to-own places are fucking terrible too, but lots of people fall prey to the "dream" of someday owning a big-ass tv or "fancy" sofa or whatever at 29% interest or whatever their bullshit nickel & diming scheme is. It's really sad.

I've actually been thinking a lot about work, money, its value, and how it fits in or doesn't with a person's values/wants/needs today. I was just about to start a thread about it as a matta-o-fact. Stay tuned.

[Floogeldy]

8. Some people going to those places still owe banks for overdraft charges.

:o

[pitohui]

9. you can get your check cashed for $3 at walmart

at least around here

so i honestly don't know why, the only person i knew who admitted to using them was manufacturing the checks herself and for some reason thought they'd get less scrutiny (yes, she ended up in prison but for a different financial crime, so maybe she was right!)