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The logic that is surprising the application of check cashers and pay day loans

The logic that is surprising the application of check cashers and pay day loans

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

Read the transcript that is full

HARI SREENIVASAN:

Next: some cash is needed by you real fast?

Economics correspondent Paul Solman explores why, for a few clients, the bet that is best may possibly not be the financial institution.

It is element of their regular series Making Sense of economic news.

JOE COLEMAN, President, RiteCheck:

And also this is East 138th Street, which in lots of ways may be the Wall Street of this Bronx. You’ve gotten a complete lot of economic providers over the road, bodegas. You’ve got tiny cash remitters.

PAUL SOLMAN:

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And there is a pawn store, maybe maybe not the sort of financier you’d find from the Wall that is actual Street. But, hey, this is actually the South Bronx, poorest district that is congressional America, where some 40 % of residents reside underneath the poverty line.

JOE COLEMAN:

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

PAUL SOLMAN: