Well... As someone who has been homeless and lived in a “ghetto” area (West Oakland, California), I can see Gavin Newsom’s point, to an extent.
It is EXTREMELY difficult to get a bank account in West Oakland when you’re living on the streets and don’t have your birth certificate, Social Security Card, or even something as simple as a permanent residence!
Also, the banks require a minimum amount of money up front just to open a checking account. Tell me, how the heck are you going to open a checking or savings account with only five dollars in your pocket? It CAN’T be done in W. Oakland, I KNOW! I tried it!
Therefore, from my own, personal, first hand experience, it’s not easy at all to open a checking account when you’re broke, homeless, and living in a Democrat controlled, “depressed” area!
Also, of major note, is the fact that there were NO Walmarts in West Oakland when I was living there—Thank you, Union thugs!—I don’t know if that’s changed by now, but something tells me it still hasn’t. If there had been a Walmart, the Check Cashing Stores most assuredly would have become more competitive just to stay in business.
Anyway, because of these situations, I was forced to use the services of Check Cashing stores whenever I happened to receive a check for any odd job that I had done.
The Check Cashing stores would then exact an outrageous service charge (I think it was about 10 percent on paychecks, and it went up from there for personal checks) for the supposed “risks” they incurred. Of course, they knew they could get away with this because, when you’re poor and homeless, you really don’t have much of an option.
Also, if you happened to be lucky enough to receive a weekly or fortnight’s paycheck and were stupid enough to go these places to get a “Payday Loan” for some cash emergency reason, not only would they impose more outrageous “service” charges, they’d practically take your first born child if you didn’t pay them back in a timely manner!
Therefore, as I have personally experienced, I’m somewhat in agreement with Gavin Newsom’s assessment.
However, where I STRONGLY disagree with Gavin Newsom’s allegations, is that these Check Cashing stores not only prey on Blacks and Latinos, they prey on EVERYONE!
In other words, they are cut-throat, equal opportunity exploiters!
Anyway, even now, years later and a thousand miles removed from West Oakland, whenever I happen to drive by a Check Cashing store, I still can’t help but cringe.
They are pure evil!
In conclusion, the best way to deal with these Check Cashing loan sharks is through Capitalistic means, NOT government interference:
For instance, if Walmart were allowed to build a store in West Oakland, ALL the Fleecers—from the corner market stores (who routinely charge ten times actual retail costs), to the Check Cashing stores, to all the other predators who prey on peoples’ sufferings in the ghetto—would be forced to become competitive, or else perish!
Cheers!
if Walmart were allowed to build a store in West Oakland, ALL the Fleecers—from the corner market stores (who routinely charge ten times actual retail costs), to the Check Cashing stores, to all the other predators who prey on peoples’ sufferings in the ghetto—would be forced to become competitive, or else perish!
Is it a question of allowing Walmart to build a store or Walmart not being interested in building in an area where shoplifting, violence, hold-ups and other crime is rampant. Corner market owners have high prices, yes, but when you look at it as more like combat pay and loss coverage they don’t do that well. Those that do well work at least 16 hours a day and then some.
Don’t know much about check cashing stores so I have no comment.