posted on December 4, 2000 06:01:48 AM new
I was wondering what fees are involved with places that cash checks, other than banks. Also what iformation do they need from you? Do they just take your name and adress, or do they take your social security number for tax records to trace your income?
posted on December 4, 2000 06:12:41 AM new
I don't know what they do now - would never had to use one but back in the "dark ages," our business took us on the road for months at a time, and once we were in an area which had no ATM's. We had to cash a check at such a place (check cashing store) and all I recall is that they charge about 10% of the value of the check, it has been SO many years I can't recall anything else about the indecent, except we were very careful to never allow ourselves to run out of cash when we were possibly going to be away from an area that would naturally have ATM's.
Why would you want to use such a place? Why not open a checking account?
posted on December 4, 2000 06:17:48 AM new
The so called "check cashing" places in my area are not used for cashing checks you may have written to you. They are a place you can take your personal check, and get cash for it, even if your checking account doesn't have the money yet. It is a method of postdating a check in order to get cash.
I'm sure the fee to do this is sizable...the ones near here are called:
Check-N-Go, Check Into Cash, etc.
There is no good way to hide income. There is always a paper trail. Attempting to hide income is frowned upon by the IRS.
posted on December 4, 2000 07:05:03 AM new
Check cashing businesses in Pennsylvania can be used for those without a bank account or those needing a "cash advance". PA heavily regulates these types of establishments to prevent the type of situation jwpc mentions. I was once out of town and needed to cash a payroll check which was sent to me. Being far from my home there were none of my bank in the area. I went to one of the check cashing establishments to cash it.
It took a whole lot of paperwork just to get the process started. I had to register with them and this took multiple identification. I also had to list my employer, which they verified while I waited. They also took a picture of me for their records. It probably took more than 30 minutes to get through the process.
I was concerned that the fee was going to be outrageous but the state regulates how much they can charge. The fee for my check was 3/4 of 1 percent. I didn't feel that was too terrible for not having any established account where I was. The convenience was worth it.
On the other hand, pay close attention to what they are charging. In my home city someone opened two check cashing businesses. These were the only ones of their type to have ever been here. I didn't pay much attention to them. I just assumed they were like the one I dealt with. A few months later I noticed they were both closed. Soon after that I saw in the newspaper that the estabishment had been closed by the Attorney General and they had been fined $150,000 for charging usury fees (last I knew in PA that means charging more than 25% in interest or fees) and were ordered to pay back the fees to their previous customers.
Make sure you aren't planning on using one of these businesses who just hasn't been caught yet like those people.
