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I once ran out of cash when driving across the country with my family, because the bank froze my account 2 days after supposedly clearing a check and telling me
by ghufran_syed 10y ago
I once ran out of cash when driving across the country with my family, because the bank froze my account 2 days after supposedly clearing a check and telling me I had access to my funds. My bank told me it might take up to two weeks to get access to my funds. I would have been much better going to a check cashing place, because of their clarity and transparency.
I almost ended up having to sleep with my kids in the car, or in a park somewhere, but we managed to find a pawn shop that was open 24 hours. We paid around $60 to borrow $1000 for two weeks, which is a high rate compared to a regular bank loan if you can get one. But it was the difference between my kids sleeping in a hotel and being homeless. People who want to shut down these kind of services have good intentions, but the effect of their paternalism would be to reduce choice for poor people, and make their lives worse.
- waqf 10y agoCredit cards seem tailor-made for this case, because they give you four weeks or so interest free and then start with the usurious rates.
- John23832 10y agoThe evidence shows that situations like yours are not how payday check cashing businesses are usually used. Often people get into a revolving door of debt. Sure, there are situations where they can be used for good. Generally however, they are not. Rather than accepting, and let's call them what they generally are, predatory check cashing loans, for the VERY limited good that they do, why not work on improving the clearing house system so that your check can get through a real bank in a reasonable amount of time?
- skookumchuck 10y agoHow does removing options for people make them better off?
- heeen2 10y agoHard drugs, drunk driving, driving without seat belts are not legal options that make people better off. Buying food below certain levels of quality for cheap is not an option.
- deleted 10y ago[deleted]
- lwyr 10y agoBy removing bad options. Like cars without seatbelts, or toys with lead in them.
- skookumchuck 10y agoThe trouble with removing "bad" options is when you leave no other options.
- John23832 10y agoThat makes no sense. We're not talking about lesser options that are slightly off the norm. These are bad options that are clearly outliers.
- skookumchuck 10y agoWhat do you suggest are other options than check-cashing stores?
- John23832 10y agoAn actual bank?
- pdkl95 10y ago> revolving door of debt A lot of this debt is replacement for missing income. Given the increasing gap[1] between income and productivity as debt substitutes for income, is a "revolving door of debt" or "debt instead of savings is the new normal"? Yes, predatory loan sharks should be harshly regulated and obviously improvements should be made to checking and other financial systems. I'm only suggesting that we also need to address the larger causes, or we're leaving half the problem unfixed. As long as income continues to drop relative to productivity, there will always be opportunists trying to "help" with predatory terms. [1] https://upload.wikimedia.org/wikipedia/commons/e/ef/Productivity_and_Real_Median_Family_Income_Growth_in_the_United_States.png https://upload.wikimedia.org/wikipedia/commons/e/ef/Producti...
- John23832 10y agoThe increase in economic inequality (and effects in that same realm) a very huge issue, I agree. I just thought it was a little out of the scope for this thread.