Check Cashers Preferred
Isn't it interesting that even as our lawmakers are addressing legislation that would require banks to cash checks for people who lack bank accounts and provide more low-cost services to the poor, a survey by the Consumer Bankers Association concludes that such a law would not necessarily benefit low-income people.
When asked why they were using check-cashing outlets instead of banks, people said they were willing to pay more for what they consider to be the convenience of check-cashing facilities. And more than two-thirds of those persons questioned already have relationships with financial institutions.
The conclusion from the study is not that low-income consumers are being victimized by price-gouging check cashers, as some members of Congress have claimed. 57% of those people cashing checks said they know they pay more for check-cashing services than they pay to maintain a bank account. But they are attracted by more convenient hours and locations.
As our marketing people have been telling us for years?the three most important reasons for placement of a branch are location, location and location.
Congress is considering a law which would require banks to cash government checks at no charge to all presenters-whether they have an account or not. We hope this new study will make them think twice about such legislation.
Copyright © 1990 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 1, No. 3, 3/90
First published on 03/01/1990