Actually, some check cashing places, like the unbank and others...charge
much more than 10% of the check depending on what type of check it is. I
think there may be some limit to the amount they can charge on state and
federal issued checks since those checks have lower percentage
rates...or it may just be that there is less risk involved with cashing
those checks since they are pretty much guaranteed (well...not with the
budget deficits in Minnesota...but that's another story). 

I do think that these check cashing places gouge poor folks and
immigrants. Many immigrants use services like the unbank, instead of
getting accounts, because they are undocumented and either in reality
have no other option or are too afraid to exercise other options.

-Brandon
Powderhorn Park

-----Original Message-----
From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED]] On Behalf
Of Barbara Lickness
Sent: Monday, March 04, 2002 9:29 AM
To: Bruce Gaarder; [EMAIL PROTECTED]
Subject: Re: [Mpls] RE: unbank

I went to the link Bruce suggested.  It pretty much
confirmed my thoughts regarding this issue.  The
commercial check cashing facilities provide a service
to people that banks do not with a lot less hassle. 

In my neighborhood there is a huge Mexican/Latino
population. For whatever reason, they don't seem to
use traditional banking institutions.  

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%)get money orders to pay your bills,
and wire some money back to Mexico or wherever for
your family members back home. You can purchase long
distance phone cards, lottery tickets, groceries, a
little beer, sodas from your home country, pharmacy
items you are used to from Mexico, and a great meal
all in the same facility. On top of it you are
serviced by someone who speaks your language.
Traditional banks aren't doing that and never will. 

I remember a time not so long ago where lots of people
used to get their paychecks cashed at the local
grocery store or bar. As long as they knew you or you
were with someone else they knew, they would cash your
check. We didn't have direct deposit then or check
cards.   

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.

Barb Lickness
Whittier    

=====
"Never doubt that a small group of thoughtful, committed citizens can
change the world.  Indeed,
it's the only thing that ever has." -- Margaret Mead

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