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Check Cashing Stores

All,

A friend of mine has gotten himself into a lot of financial trouble mainly to do with a drug habit. I have learned that in order to support his drug habit, he was using the services ot two different check cashing stores. Since he is now in rehab, I am working with his family to get this debt paid off.

I have never dealt with this type of company. What am I in for? I have no idea how they work and I kind of always thought these types of places were nothing more than legalized loansharking. Is there some kind of paperwork that my friend should have showing what he agreed to? Any normal lending institution would be more than glad to work with you, but I hope you understand that I don't exactly trust these people.

Other questions I have... Can anyone pay off this loan? He is married, but she knew nothing about the check cashing stores.

Do check cashing stores require collateral? If so, what kind? They have a house but lease their vehicle.

Thanks!

Reply to
soma1virex
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I have a cousin who worked at a money store for several years. Yes, the fees are high, but if there wasn't a need for such services, these stores would not exist. For the most part, these are small businesses with an owner who is working hard to keep things going, and they have no desire to rip off anyone (other than through getting them hooked on the high fees).

I doubt that any of them would care how they get their money paid back, especially in the case of a person who has gone through rehab. You likely will have to go there in person with the person who signed the paperwork. I doubt that they will tell you anything about someone else's account.

No. That is why the fees are so high. There are finance companies out there that will loan against a car.

-john-

Reply to
John A. Weeks III

Some reporters have interviewed customers who say they prefer these places over banks because they are cheaper and more predictable. Late fees and over limit fees at banks may be larger one cant always be sure they when they will occur. Plus there is more bureacracy to fix a broken bank account. When you figure in "fees" at banks for bad transactions $500 and under, the imputed annualized interest rate can be in triple digits also.

(Maybe I have a grudge because bank charged an expected bill pay fee when quirk happened due to Labor Day. This despite cycling huge amounts of paycheck deposits over the years.)

Reply to
rick++

I am sure that people who import illegal drugs into this country work very hard at their trade as well, so should we make it legal? I have also heard that some bank robbers work very hard at their profession in order to avoid getting caught, maybe we should make robbing banks legal too.

The fact that someone "works hard to keep something going" is not a sufficient reason for society to allow it to continue or accept it as a good thing.

Reply to
emailforian

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