Check-Cashing Stores Target Areas With High Crime

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TheReal_Broke_88m3_13

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Sep. 19, 2013 — Check-cashing outlets may be strategically targeting persons who live in high-crime neighbourhoods, according to researchers at St. Michael's Hospital.

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Dr. Joel Ray, a physician-researcher at the hospital's Li Ka Shing Knowledge Institute, compared the density of check-cashing places in Toronto neighbourhoods with police-reported crime data. Along with his colleagues, Dr. Ray observed a nearly seven times higher rate of check-cashing places in neighbourhoods with the highest rate of violent crime, even after accounting for nearby retail alcohol outlets and bank branches and income levels.

The findings appear online in the journal Sociology Mind.

Dr. Ray said the same people who use check-cashing places -- single parent mothers, the elderly and young males -- are those who are more likely to be victims of violent crime. "Therefore, check-cashing places may be strategically placed where customers abound," he said.

With the closing of mainstream banks in many low-income neighbouhoods, check-cashing places, or CCPs, proliferated over the last decade. They are often seen as alternative financial institutions to banks and tend to be used by those in need of quick cash, or by those who frequently live from pay check to pay check, especially government support checks.

Dr. Ray said that despite their convenience, CCPs may represent a form of "deviant" banking because of their extremely high user fees.

"The check cashing place industry, which is largely unregulated, is highly competitive and highly taxing on its users," said Dr. Ray. "It's the notion that the person who uses a CCP is probably in a socially unstable state. The CCP industry knows this. Unfortunately, it's all about product placement."

On average, CCPs charge a flat fee and an additional 2.99 per cent of the check value. By cashing a check immediately, a CCP provides a short-term loan whose annualized interest rate varies from 100 per cent to 600 per cent.

"A substantial amount of income is lost by the individual who uses a CCP," said Dr. Ray. "Moreover, if an individual on social assistance cashes their check through a CCP, then a portion of the tax dollars intended for use by that person goes to the CCP."

Dr. Ray said banks need to step up to the plate and offer more outreach in low income areas, by opening more branches and assisting local residents in setting up an account.

"CCP users may be unaware that cashing a government check under $1,500 is free of charge at any mainstream bank, and that banks offer very affordable services," he said.
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http://www.sciencedaily.com/releases/2013/09/130919105817.htm
 
Dada

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DEAD7 said:
:ohhh:Are you saying businesses set up where profits will be greatest?
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That's what I'm like. They serve a particular need that comes with a heavy price. They always have the option not to partake. I've been with people when they've gone to get cash, they needed it at that time and that's where they could get it. If it's non-DD, for larger sums, the banks usually hold the majority of it for 1 to several days, rather than releasing it immediately. Not something I'd want to do but if it came down to it, the option exists.
 
unit321

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That's a dumb research article. Check-cashing places target places where they are going to get more business, not areas of high crime. Crime exists where low-income people live. It's an indirect result. Low-income people use check-cashing businesses. Middle and upper income people use banks. If you taught low-income people to create bank accounts and save their money, they would be using banks instead of check-cashing businesses.

Check cashing businesses are a total joke. Why would any one pay a business to get a cut of their paycheck? I would eat crackers and ramen noodles for a couple of days and wait until my paycheck cleared.
 
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when you hurting and over draft multiple bank accounts.....you can't open another account for a while after you pay it back.

But with the advent of pay-cards by people like Russel Simmons you can get pay checks and some gov checks directly deposited. You can't cash personal checks at those places...and if someone gives you a check you can cash it at the issuing bank for free. But those places did come in handy for college when I needed to cash a small student loan refund check or education benefits check....and my bank accounts were not good.
 
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Blackking said:
laws have been set up to decrease this...

we don't want our warriors treated like regular blacks and mexicans.
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They need credit unions. in Maryland they have Navy Federal Credit union for all branches of the military. they have them located Fort Meade all the way down to the DC area and NOVA.
 
Blackking

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J-Fire said:
They need credit unions. in Maryland they have Navy Federal Credit union for all branches of the military. they have them located Fort Meade all the way down to the DC area and NOVA.
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credit unions, free advice, tax returns, free assistance, crazy socialist like health and life benefits, guaranteed income, and people who will suck u off from bank officials to school admission officials at certain universities.
 
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