#1
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Check Cashing Business
I have heard from several people these are great businesses. Any ideas on how to learn the ins and outs or is it best just to go to work for one of these places and gather all the info I can?
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#2
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Re: Check Cashing Business
i represent a few of these places and let me tell you. it is unbelievable how much money they make. i'm talking about little places on the sides of gas stations in the hood who are running a million dollars worth of checks thru them a month.
i'm not even sure what the vig they charge is but i think its between 5-8%. like i said most of these places are in shady areas b/c the clientel are the types of folks that don't have bank accounts. most of them are payroll checks but i do collection work for them so i know that some of the checks end up being no good. you probably need a big roll to be able to cash that many checks too. if you are curious to see how good these places do. just drive by a few between 5-6 on a friday. lines out the door |
#3
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Re: Check Cashing Business
I see alot of people using these too.
But I dont understand why a person in America would not have a bank account, arent they free? Makes no sense to me... |
#4
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Re: Check Cashing Business
many people have abused a bank act in their past and are on chexsytems and cant get a bank act for like 5 years....they need to go somewhere to cash their checks.....a lot of ppl that dont have proper id will go there as well
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#5
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Re: Check Cashing Business
jesus christ:
MANY PEOPLE DO NOT TRUST BANKS. Has no one here met a poor person? |
#6
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Re: Check Cashing Business
Slush, What verification do they do to make sure the checks are good? In what capacity do you "represent" them?
Thanks for the feedback. |
#7
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Re: Check Cashing Business
[ QUOTE ]
Slush, What verification do they do to make sure the checks are good? In what capacity do you "represent" them? Thanks for the feedback. [/ QUOTE ] i'm an attorney that does collections. we represent a company that owns two check cashing locations and another company in a related industry of giving out payday advance loans. unfortunately i don't know very much about how either of the businesses are ran. both of them were brought to my firm by my partner so i have never even met either of the owners and the amount of accounts we get from them is very small in relation to our total case load. for instance, we average between 2000-2500 total files placed with us a month and i think we get 2-3 check cashing files and about 10 pay day advance files a month. when we get the cases all we do is send out a demand and then file a form complaint after 30 days if we don't receive payment. our state allows for treble damages of the amount of the bad check, which is nice, but its not that way in all states. i am personally aware of the facts of only one of our check cashing cases in which a business owner cashed a check drawn on one of his company accounts and then the dirtbag immediately called his bank to cancel the check. the only reason i even knew about this case is because we ultimately sent the sheriff to levy some of the assets of the business. there must be some service they can use to verify funds of the checks they are cashing. we use a service where all the checks we receive in the office are electronically deposited thru a device that scans the checks at high speed and reads the account numbers. that tells me they would have to use something like that to verify funds or they would be getting slaughtered and we would be doing a lot more work for them. i do know that the pay day advance places use a system they all subscribe to where if you [censored] one of them over, you are blackballed from all of them until you make good. |
#8
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Re: Check Cashing Business
[ QUOTE ]
i'm not even sure what the vig they charge is but i think its between 5-8%. [/ QUOTE ] I believe the standard vig is actually around 3%. Still not a trivial number... |
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