2) A number of legal and illegal immigrants come from cultures wherein the vast middle/lower classes do not often open bank accounts in their own countries, thus they tend to shy away from them here.
3) Many illegal immigrants are afraid that opening up an account may get them noticed by the government and deported/imprisoned.
Add all that together, and you get these paycheck cashing places that thrive charging large fees.
It's insane, but if the first of the month is a whole week away and you need crack right fucking now it starts to look a lot more appealing.
quote:
Maradon! had this to say about Jimmy Carter:
Most of these places also do paycheck advances and charge up to 50% interest.
Try 99% interest for a one week loan depending on which one you try in California, The APR on the things adjusts to about 10,000% (thank you NPR/ Marketplace w/ Kai Risdal for this tidbit). They are rape you in the ass businesses that prey on the un-intelligent/desperate.
A cash advance loan secured by a personal check - such as a payday loan - is very expensive credit. Let's say you write a personal check for $115 to borrow $100 for up to 14 days. The check casher or payday lender agrees to hold the check until your next payday. At that time, depending on the particular plan, the lender deposits the check, you redeem the check by paying the $115 in cash, or you roll-over the check by paying a fee to extend the loan for another two weeks. In this example, the cost of the initial loan is a $15 finance charge and 391 percent APR. If you roll-over the loan three times, the finance charge would climb to $60 to borrow $100.
