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.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.
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.