Check cashing for the Unbanked
Q: I know you hate payday loan companies. Do you feel the same way about check-cashing companies?
A: Check-cashing companies are not a good deal, but they’re nowhere near as bad as payday lenders. All check-cashing businesses do is charge a fee to cash a check.
Honestly, it’s kind of silly to me that places like this can make money when all you have to do is walk into a bank and open an account. But there’s a percentage of our population that people in financial circles call “unbanked.” This means they avoid banks for whatever reason, but in the process they leave themselves susceptible to bad deals like this.
So I don’t feel the same way about check-cashing companies as I do about payday lenders. It’s still not a financially smart move to pay a storefront operation a fee just to cash a check, but these businesses aren’t nearly as abusive as payday lenders.