Unbanks and their ilk are profitable alternatives to banks because their
customers don't trust banks, never have, and essentially deal only in cash.
It has not helped when needing credit for such items as mortgages for those
who deal in cash because, of course, there's little or no real credit
history on which to base a decision to loan.
Andy
--------
"I hope we shall crush in its birth the aristocracy of our
monied corporations which dare already to challenge our
government to a trial of strength, and bid defiance to the
laws of the country."
--- Thomas Jefferson,1816
> From: "Brown, Terrell" <[EMAIL PROTECTED]>
> Date: Mon, 4 Mar 2002 10:04:27 -0600
> To: "Barbara Lickness" <[EMAIL PROTECTED]>, [EMAIL PROTECTED]
> Subject: [Mpls] unbank
>
> -----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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