Check-Cashing for the Unbanked
Brian asks if Dave feels the same about check cashing companies as payday loan companies. Dave doesn't like them, but he doesn't put them in the same category as payday lenders.
QUESTION: Brian on Twitter asks if Dave feels the same about check cashing companies as payday loan companies. Dave doesn’t like them, but he doesn’t put them in the same category as payday lenders.
ANSWER: The check cashing companies are not a good deal, but they’re nowhere near the rip-off that the payday lender is. They just charge you a fee to cash your check because you don’t have a bank account. That’s kind of silly to me because you could just go get a bank account, but there’s a percentage of our population they call “unbanked,” meaning for some reason they avoid banks, and then they leave themselves susceptible. They don’t have a way to cash a check, so they pay a storefront operation a fee that’s too high to cash a check, but it’s nowhere near as abusive as the payday lenders.