The astonishing logic behind the application of check cashers and payday advances

The astonishing logic behind the application of check cashers and payday advances

Frequently regarded as predatory, the check cashing industry is booming. Lisa Servon wondered why people that are lower-income had been struggling would cash checks in the place of finding a banking account, therefore she took work as being a cashier to discover. Just just What she discovered — so it’s frequently cheaper — could be the subject of her book that is new,The Unbanking of America.” Economics correspondent Paul Solman reports.

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HARI SREENIVASAN:

Next: some cash is needed by you real fast?

Economics correspondent Paul Solman explores why, for a few clients, the most useful bet may not be the financial institution.

It is element of their series that is weekly making of economic news.

JOE COLEMAN, President, RiteCheck:

And also this is East 138th Street, which in lots of ways could be the Wall Street associated with Bronx. You’ve gotten a complete great deal of monetary companies over the road, bodegas. You’ve got tiny cash remitters.

PAUL SOLMAN:

And there is a pawn store, maybe perhaps perhaps not the type of financier you’ll find in the actual Wall Street. But, hey, here is the South Bronx, poorest congressional region in America, where some 40 per cent of residents reside underneath the poverty line.

JOE COLEMAN:

The service that is main in the road is RiteCheck, where we now have our monetary solution center.

PAUL SOLMAN:

Joe Coleman is president for this string of 14 stores when you look at the Southern Bronx and Harlem. Continue reading