Over the last several years there has been an increase in legislation to restrict check cashing services and similar financial services that operate outside of the bounds of banks. The public is constantly reminded that this is for their best interest, but if you want to find out what is in someone’s best interest then find out what works first. There are reasons why so many low and moderate income families choose to use alternative financial services and avoid banks.
One of the biggest issues many people have with banks is how secretive they are. Sure, they are required to give you all of the information on fees and just about anything else you will want to know, but no one is going to read 300 pages of legal speak to figure out what fees they will be charged on a checking account. A checking account which would have likely been free just ten years ago. That leads us to the next point:
Many consumer advocacy groups berate payday loans for their high-interest rates, but what they fail to take into consideration is that these loans are intended to be paid off in as little as a few weeks. If you are paying 200% APR on a loan, but it only takes you a week to pay it off then you are not really paying that much. This is strictly a hypothetical rate and should not be used as a reference. Banks, on the other hand, will charge you up to $150 for overdrawing a single dollar.
Banks will lie to your face and tell you that your satisfaction is important. In actuality, a bank has no interest in maintaining you as a customer unless you own a high-value account. Check cashing services, on the other hand, are upfront about how they operate. They are also going to have more incentive to retain you as a customer since they often work with many customers who bring them less money. Banks work with a few large customers and tolerate smaller customers.
If you are looking for check cashing services in Illinois, then check out West Suburban Currency Exchanges, Inc.
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