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Banks and others have an interest in not having these checking-cashing businesses be HDCs because banks often end up eating the liability. On the other hand, many argue that they provide a service for those without established credit.
Others argue that their fees are excessive. There is an ongoing tension and battle among the banks, consumer groups and check-cashing services.
Some argue that these companies take advantage of both consumers with their high fees and the immunity of HDC status, that they deliberately remain free of knowledge so that they can get paid.
What do you think? Are checking cashing businesses a boon or fraud magnets? Would further regulations help? If yes, what sort of new regulations?
Please answer the questions in bold print.
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