Featured Research

from universities, journals, and other organizations

Check-cashing stores target areas with high crime

Date:
September 19, 2013
Source:
St. Michael's Hospital
Summary:
Check-cashing outlets may be strategically targeting persons who live in high-crime neighborhoods, according to researchers.

Check-cashing outlets may be strategically targeting persons who live in high-crime neighbourhoods, according to researchers at St. Michael's Hospital.

Related Articles


Dr. Joel Ray, a physician-researcher at the hospital's Li Ka Shing Knowledge Institute, compared the density of check-cashing places in Toronto neighbourhoods with police-reported crime data. Along with his colleagues, Dr. Ray observed a nearly seven times higher rate of check-cashing places in neighbourhoods with the highest rate of violent crime, even after accounting for nearby retail alcohol outlets and bank branches and income levels.

The findings appear online in the journal Sociology Mind.

Dr. Ray said the same people who use check-cashing places -- single parent mothers, the elderly and young males -- are those who are more likely to be victims of violent crime. "Therefore, check-cashing places may be strategically placed where customers abound," he said.

With the closing of mainstream banks in many low-income neighbouhoods, check-cashing places, or CCPs, proliferated over the last decade. They are often seen as alternative financial institutions to banks and tend to be used by those in need of quick cash, or by those who frequently live from pay check to pay check, especially government support checks.

Dr. Ray said that despite their convenience, CCPs may represent a form of "deviant" banking because of their extremely high user fees.

"The check cashing place industry, which is largely unregulated, is highly competitive and highly taxing on its users," said Dr. Ray. "It's the notion that the person who uses a CCP is probably in a socially unstable state. The CCP industry knows this. Unfortunately, it's all about product placement."

On average, CCPs charge a flat fee and an additional 2.99 per cent of the check value. By cashing a check immediately, a CCP provides a short-term loan whose annualized interest rate varies from 100 per cent to 600 per cent.

"A substantial amount of income is lost by the individual who uses a CCP," said Dr. Ray. "Moreover, if an individual on social assistance cashes their check through a CCP, then a portion of the tax dollars intended for use by that person goes to the CCP."

Dr. Ray said banks need to step up to the plate and offer more outreach in low income areas, by opening more branches and assisting local residents in setting up an account.

"CCP users may be unaware that cashing a government check under $1,500 is free of charge at any mainstream bank, and that banks offer very affordable services," he said.


Story Source:

The above story is based on materials provided by St. Michael's Hospital. Note: Materials may be edited for content and length.


Journal Reference:

  1. Joel G. Ray, Talia Boshari, Piotr Gozdyra, Maria Isabella Creatore, Flora I. Matheson. Cheque Cashing Places: Preying on Areas with High Crime. Sociology Mind, 2013; 03 (04): 278 DOI: 10.4236/sm.2013.34037

Cite This Page:

St. Michael's Hospital. "Check-cashing stores target areas with high crime." ScienceDaily. ScienceDaily, 19 September 2013. <www.sciencedaily.com/releases/2013/09/130919105817.htm>.
St. Michael's Hospital. (2013, September 19). Check-cashing stores target areas with high crime. ScienceDaily. Retrieved November 24, 2014 from www.sciencedaily.com/releases/2013/09/130919105817.htm
St. Michael's Hospital. "Check-cashing stores target areas with high crime." ScienceDaily. www.sciencedaily.com/releases/2013/09/130919105817.htm (accessed November 24, 2014).

Share This


More From ScienceDaily



More Science & Society News

Monday, November 24, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

NY Gov. on Flood Prep: 'prepared for the Worst'

NY Gov. on Flood Prep: 'prepared for the Worst'

AP (Nov. 23, 2014) First came the big storm. Now comes the big melt for residents of flood-prone areas around Buffalo. New York's governor says officials are preparing for the worst as the temperature is expected to rise and potentially melt several feet of snow. (Nov. 23) Video provided by AP
Powered by NewsLook.com
European Parliament Might Call For Google's Break-Up

European Parliament Might Call For Google's Break-Up

Newsy (Nov. 22, 2014) This is the latest development in an antitrust investigation accusing Google of unfairly prioritizing own products and services in search results. Video provided by Newsy
Powered by NewsLook.com
WFP: Ebola Risks Heightened Among Women Throughout Africa

WFP: Ebola Risks Heightened Among Women Throughout Africa

AFP (Nov. 21, 2014) Having children has always been a frightening prospect in Sierra Leone, the world's most dangerous place to give birth, but Ebola has presented an alarming new threat for expectant mothers. Duration: 00:37 Video provided by AFP
Powered by NewsLook.com
Toyota's Hydrogen Fuel-Cell Green Car Soon Available in the US

Toyota's Hydrogen Fuel-Cell Green Car Soon Available in the US

AFP (Nov. 21, 2014) Toyota presented its hydrogen fuel-cell compact car called "Mirai" to US consumers at the Los Angeles auto show. The car should go on sale in 2015 for around $60.000. It combines stored hydrogen with oxygen to generate its own power. Duration: 01:18 Video provided by AFP
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:

Strange & Offbeat Stories


Science & Society

Business & Industry

Education & Learning

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile: iPhone Android Web
Follow: Facebook Twitter Google+
Subscribe: RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins