Ever used a Cash Checking / Payday Loan business?

Those businesses feed off of the working poor.

I hear that they are very profitable.

 

Ive seen like 15 of them pop up since the beginning of the year in my part of town... Insane.

 

I once drove on a certain section of Westheimer (from Chimney Rock to Gessner) and I literally saw a cash checking business on every single block. Some of them had 2 of them on the same block. They must be doing something right.

 

Those places are sad, predatory, and borderline immoral.

I definitely think you should do it.

P.S. Why is it for sale?

 

STAY AWAY!

 

On a side note most of the big banks own most of the pay day loan businesses. JPM Chase has it's hands all over those money making monsters.

 

Considering that pretty much all banks offer free accounts, why is there any reason to use these services? Is it that the working poor simply tend not to know about it?

 

It's because most of the working poor have exhausted their options with banks, multiple delinquent accounts.

 

Immoral? Why immoral?

They charge high interest rates... and they have to...

Their typical clientele are people who are in a bind and need quick cash and have no other options. What is the likelihood they'll get repaid? Much smaller than a bank who gives loans to middle class income citizens with enough assets to cover such a loan.

I imagine many of these people live paycheck to paycheck (or they wouldn't need such a loan)... Once it comes time to repay a payday loan and payday has arrived - and they have to choose between feeding their family, keeping the lights on, or repaying a an emergency loan... what falls to the bottom of the list? Yup - that loan.

I imagine the default rate must be sky high for these loans.

OP - do you know what the typical actions are to try to recover from those who default? If they have no assets to seize (and I imagine they don't) - what do you do? That would be my biggest concern. What's the point of suing someone who has no assets?

 

I think the problem is banks don't tend to exist in poorer neighborhoods... instead you see a lot of "check cashing businesses" in their place.

I'm guessing there isn't enough profit to be made on the working poor... hence banks aren't as heavily populated in such areas.

 

Possibly. But I know there are plenty of banks around east Austin (low income/higher crime area).

 

Here's a incentive you could use outside on the window:

FREE CRACK! (ask rep inside for details)

 

In before the herding to D&D by bleeding heart liberals like me hammering the OP for exploiting the poor and hard core capitalists defending 456 percent interest (literally on a 2 week loan) as being acceptable because the lender is taking risk.

 

What is the difference between these businesses and loan sharking? I guess one of the two doesn't break your kneecaps if you don't pay up?

 

These were outlawed in the state of Arkansas a couple of years ago. I wouldn't be surprised if this spread to other states.

 

Don't overpay for the accounts receivable. Har har har.

 

I knew someone who owned one. Had to keep a large amount of cash on hand. Was robbed once by outsiders at gun point and once by employees working with outsiders at gunpoint. Be careful.

 

I bet that had to do with Wal-Mart wanting all the check cashing/loan business not common decency.

 

Rocket River