-----Original Message-----
From: Barbara Lickness

However, they will go to the grocery stores like Los Amigos on 28th and
Blaisdell who has a check cashing service to conduct their banking
business. At that store you can get your check cashed, (I think he
charges 1% or 2%) ... On top of it you are serviced by someone who
speaks your language. Traditional banks aren't doing that and never
will. 

<snip>

The one area of concern for me with check cashing facilities in
Minneapolis has been the percentage they are allowed to charge for
cashing checks. I have heard some charge between 6-10%. That seems
excessive. Perhaps legislation has been passed to cap the amount that
can be charged. I would support that just to keep the people who prey on
the poor out or the business.

[TB]  Those fees don't sound all that much higher than some would pay to
use an ATM card with the owner of the ATM having much less risk as the
system verifies that there is an account and is money in it.

If you don't bank at one of the Big Three, you often pay a buck or two
to the owner of the ATM (however Lund's doesn't charge for use of
their's) plus you may pay your bank a buck or two for using a machine
that is out of whatever network they are part of.  $2 to $4 total
wouldn't be unusual which if you get $50 is up to 8% of your
transaction.  If the "unbanked" are only paying 1 or 2% it may be the
same deal those of us with bank accounts are getting.

Now I have no idea what the cost of running such a business is, there is
certainly some payroll and rent for starters.  How many checks does one
clerk cash in an hour?  There was an attempt to curb ATM fees a few
years back that didn't go anywhere.

I have much less sympathy for the payday loan companies (seems like
there is one on Lake Street by the Rent to Own place, I'm sure there are
others).  Their rates make the 18 - 24% on some credit cards look like
prices Walmart advertises.  Maybe such places provide some help for a
neighborhood, provide money that people can spend in neighborhood
stores?  In many case I think their negatives exceed their plus side.




Terrell Brown
Loring Park
terrell at terrellbrown dot org
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