Big Banks Elbow In On Check Cashing, Payday Lending, as well as other Fringe Financial Organizations

Big Banks Elbow In On Check Cashing, Payday Lending, as well as other Fringe Financial Organizations

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Traditional wisdom is that low-income people are better served by main-stream finance institutions than by check cashing storefronts, payday loan providers as well as other providers of fringe lending options. But now, that knowledge gets switched on its mind as fee-starved banking institutions begin peddling these costly “subprime” services and products for their poorest clients directly.

Major nationwide and local banking institutions including U.S. Bank, areas Financial and Wells Fargo are rolling away or building on the “nontraditional” offerings, in accordance with the ny occasions. They’re providing such things as little, short-term loans, check-cashing and bill-pay services, cash transfers and prepaid debit cards. Continue reading