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Archive for the ‘Check Cashing Outlets’ Category

As more and more layoffs, pay cuts, and mortgage resets plague the economy, people are finding themselves increasingly financially stressed. Some of these people are going to check cashing companies, writing personal checks, and borrowing cash against those checks.

This is an extremely dangerous thing to do.

Here is what check cashing companies bury in the fine print of their contracts: if the check is over a certain amount – it varies by state – and you do not pay them back in full, with interest, by the due date, they can and usually will report you to law enforcement authorities for writing a bad check.

This is a CRIMINAL charge. Not a civil charge. You can be arrested for writing bad checks. You can go to jail. You can have a criminal record forever.

All because you borrowed money and were not able to pay back your debt in full within a couple of weeks.

It’s the modern day equivalent of debtors prison.

If you miss a credit card payment it will be reported to credit bureaus and likely to collection agencies, and they can get a civil judgement against you, and possibly attach your wages.

However they can not take you to jail for missing a payment.

You can go to jail for not paying back a check cashing agency. It is never safe to use them because if there is any emergency that causes you not to be able to repay them, you are risking your future for a few hundred dollar loan.

So if it’s a choice between missing a credit card bill or a utility bill or a cable bill, or using a check cashing agency – the credit card and utility companies and cable companies all will work with you. The check cashing agency will not.