Why Focus on Check Cashing?
Check cashing is having devastating effects on our communities. It strips consumers of their income and takes money needed to improve the lives of our citizens. Check cashers wreck family finances, stripping American families of over 1.5 billion dollars in excessive fees each year. Cash-strapped Massachusetts residents are losing millions of dollars. The urgent need to stimulate the economy makes reforming check cashing fees a priority because it will put more cash back in consumers’ pockets.
Check cashers profit from unbanked customers - those who do not use banks- charging excessive fees at rates that surpass 7% of the check. According to the Massachusetts Division of Banks Report on Check Cashers, the average customer pays over $750 a year in fees with an income of $26,000. The societal costs are even greater. Consumers lose a significant portion of their income, making money tight, and often seek taxpayer help from social service organizations and publicly-funded government programs that provide food and assistance to cover rent and utilities.
Twenty-six states and the District of Columbia have established limits on fee rates.
Massachusetts must be the twenty-seventh.
To see other states' laws about check cashing, see spreadsheet:
Check cashers profit from unbanked customers - those who do not use banks- charging excessive fees at rates that surpass 7% of the check. According to the Massachusetts Division of Banks Report on Check Cashers, the average customer pays over $750 a year in fees with an income of $26,000. The societal costs are even greater. Consumers lose a significant portion of their income, making money tight, and often seek taxpayer help from social service organizations and publicly-funded government programs that provide food and assistance to cover rent and utilities.
Twenty-six states and the District of Columbia have established limits on fee rates.
Massachusetts must be the twenty-seventh.
To see other states' laws about check cashing, see spreadsheet:
| states_check_cashing_laws_spreadsheet.pdf |
