Check Cashing Shops Expensive, Banks Better, According to Massachusetts Division of Banks Study

June 24, 2013
The Republican (MA) 
credit card news

A report from the Massachusetts Division of Banks concludes that signing up for a checking account at a bank or credit union is a more affordable alternative for consumers than using check cashing shops, which could charge them $200 to $1,300 in annual fees for services that would cost nothing -- or next to nothing -- at a traditional financial institution. The study estimates that the average consumer who cashes a weekly payroll check and pays bills by money order pays anywhere from 5.5 times to 35 times more per month in maximum fees versus the fees associated with a basic checking account offered via Basic Banking For Massachusetts. "We are still trying to convince consumers that it is in their own best interest to walk away from check cashing services and become bank customers," says Barbara Anthony with the state Office of Consumer Affairs and Business Regulation.
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