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Thread: Preying on Areas with High Crime: Cheque Cashing Places [in Toronto]

  1. #1
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    Preying on Areas with High Crime: Cheque Cashing Places [in Toronto]

    http://www.scirp.org/journal/PaperDo...?paperID=36854 Open access!

    ABSTRACT

    With the closure of mainstream bank branches in low-income neighbourhoods, cheque cashing places (CCPs) grew exponentially in the past decade. CCP users tend to be those in need of quick cash or who frequently live from pay cheque to pay cheque. CCPs appear to target low-income vulnerable consumers—the so-called “unbanked”. Such individuals are more likely to reside in high-crime areas. We hypothesized that CCPs are more prevalent in neighbourhoods with high crime rates, and that this might be a function of strategic marketing by CCPs, rather than merely an indicator of economic disparity. We explored the relation between the density of CCPs in each census tract in Toronto and its association with both any crime and also violent crime. The findings indicate that CCPs are more abundant in areas of high crime, and especially, violent crime, and this appears to be independent of measures of material deprivation and residential instability. While the CCP industry has strategically focused on customers of low socioeconomic status, it is plausible that they also focus on high-crime areas as well
    .
    "The findings appear online in the journal Sociology Mind.

    Dr. Ray said the same people who use cheque-cashing places— single parent mothers, the elderly and young males—are those who are more likely to be victims of violent crime. "Therefore, cheque-cashing places may be strategically placed where customers abound," he said." http://phys.org/news/2013-09-check-c...igh-crime.html
    Last edited by Nightmare; 09-19-2013 at 01:01 PM.
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    On average, CCPs charge a flat fee and an additional 2.99 per cent of the cheque value. By cashing a cheque immediately, a CCP provides a short-term loan whose annualized interest rate varies from 100 per cent to 600 per cent.
    So they are talking about what we call Pay Day Loan businesses, but with the difference that the customer presents a post-dated check as opposed to signing a loan agreement.

    Those customers are not living paycheck-to-paycheck but from paycheck to the middle of the next pay period. Or the infrequent user who has run up against an urgent need for cash (auto repairs quickly come to mind).

    Since the customer base for such businesses are not found in the more affluent neighborhoods (as defined by where people manage to get by paycheck to paycheck and/or have access to some revolving credit) they are going to cluster in less-affluent neighborhoods. That does not automatically mean the neighborhood is a "high crime" neighborhood.

    There is an awful lot of social agenda going on in the report, and certainly in the news writeup.

    stay safe.
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