Reframing the Financial Inclusion Debate: Evidence from an Up-Close View of Check Cashers and Payday Lenders

What do a Mexican immigrant living in the South Bronx, a twenty-something graduate student, and a telemarketer in Dallas have in common? All three are victims of our dysfunctional mainstream bank and credit system. As banks have grown larger and focused less on serving ordinary consumers, many have begun to get their financial needs meet from alternative financial services providers like check cashers and predatory lenders. Although these businesses are labeled as predatory and sleazy, their customers find that they offer three things banks no longer provide: less expensive products and services, greater transparency, and better service. At a time when 57 percent of Americans are struggling financially, and trust in banks is at an all-time low, it’s imperative that we understand how we got here, and what we can do to make financial health a reality for all Americans.

Date:
Haut-parleurs:
Lisa Servon
Affiliation:
The New School