Saturday, November 8, 2008

Market for check cashing and payday loans

The NY Times has a nuanced article about the business and recent sale of a big check cashing chain: Check Cashers, Redeemed

"Selling to the poor is a tricky business. Poor people pay more for just about everything, from fresh groceries to banking; Prahalad, the economist, calls it the “poverty penalty.” They pay more for all kinds of reasons, but maybe most of all because mainstream firms decline to compete for their business. Nix has served customers that traditional financial institutions neglected, but he has also profited from that neglect. Whether he profited too much, charging poor communities what the market would bear — that’s a moral question as much as an economic one. And there’s no simple answer. "

7 comments:

Anonymous said...

Interesting point as far as mainstream businesses no catering to the poor. I think with the number of payday lenders out there they could be considered as mainstream as any and this industry offers a viable inexpensive product for those that need a Payday Advance.

Trista said...

Sometimes when you are short on funds, getting a payday loan can be a useful tool.

Unknown said...

Even people who struggle with there finances, still need help from time to time. That is why I use same day payday loans. They have really helped me out.

Richard Morris said...

Getting a normal loan from a bank seems out of reach to the poor, that's why there are payday lenders. We all have little emergencies that crop up when we least expect it. They usually only require a minimal amount of cash to solve, but they generally require immediate attention. You may not have the cash readily available, but you will have it when you get your next paycheck. You obviously can’t go to a bank to borrow money because the process would take too long. So what do you do? You get a payday loan or what others called bad credit cash advance.

Cheque Loans said...

Money in the form of loan borrowed with the cheque book can be used for any purpose. Borrowers can pay off their pending bills, medical bills, and home renovation or make payment for debt consolidation. for more information about Cheque Loans

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PaydayLoans said...

A payday loan can be obtained quickly, generally within just a few hours or less after the pay day application for the mortgage has been accomplished and presented. For people who have immediate household charges to take care of, this fast transformation time in getting the cash can be a much accepted comfort.

Unknown said...

Taking a payday loan is sometimes a wise decision as it may benefit you marginally for a big deal.If it makes a remarkable change,cheque cashing service is also a considerable option to look for.

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