Check Cashing Stores

The general statement made in the article, “An Invitation to Abuse by Check-Cashing Stores”, is that allowing check-cashing stores to lend money to people regardless of the people’s ability to pay back is going to cause serious economic crisis. More specifically, this article is trying to argue that once the new bills are passed, the state's’ financial condition would aggravate intensively as soon as the these check-cashing stores start lending money, because the target of these stores is mainly the low-income families who living in a poor neighborhood, desperate for money while they are unable to pay back. The article states, “But the State Legislature has periodically tried to undermine regulators by supporting bills that could pave the way

The interest rate could be up to 1000% of the amount of money that they borrowed, if they cannot repay the loan on time, just the interest fee itself can consume them alive. What's making the situation worse is the check-cashing stores themselves are unable to handle the flow of money with their customers. This is stated in the article, “For example, state regulators typically find that check-cashing stores don't have enough employees and don't train them well enough to conduct business soundly. And some check cashers have already been involved in floating illegal loans or schemes that allow businesses to avoid taxes.” Based on the lid piece of evidence, the article insists that passing the new bills brings no benefits but destruction to the entire economy. Now the problem is not only posed on the low-income families, large businesses are also one of the main concerns that can make the economy collapse. The government will no longer able to keep track on these large businesses if they don't have the accurate information about these corporations because the check-cashing stores have helped to compose fake