If fringe finance companies are so expensive, how could we get people to use them less?
Banks and credit unions should offer products such as $500 loans and check-cashing for people without checking accounts, said Chi Chi Wu, an attorney with the National Consumer Law Center in Boston.
Yet, payday lenders and check-cashers “are fulfilling a demand that’s not being met by the traditional bank,” said investment analyst Richard Eckert of Roth Capital Partners in California.
Only a handful of banks nationally are stepping up. One is Cleveland-based KeyBank. At five inner-city branches, Key a year ago started offering check-cashing at 1.9 percent, as well as small loans, a program to help people get checking accounts and free classes on topics like credit, budgeting, mortgages and investing.
For this complete story, please visit Education is Key to Getting People to Use Banks More.
