- Published: Tuesday, March 13, 2018 09:07 AM
SPRINGFIELD – A rate hike on check cashing services will be lower than originally proposed, and rates for those on public assistance will become lower, under a compromise reached today.
State Senator Jacqueline Collins joined activists from a number of groups pushing against a higher proposal at a press conference today to thank advocates and explain the impact of new rates.
“Today is a good day for unbanked households, which are disproportionately lower-income, African-American, Hispanic and working-age people with disabilities,” said Collins (D-Chicago). “working with the Woodstock Institute and other consumer advocates, we were able to protect consumers from an across-the-board double-digit increase on the maximum fees that could be charged for check-cashing by Currency Exchanges. Most importantly, public assistance checks will see a rate decrease. We must continue to reform a system where those with the least pay the most.”
The table below reflects the new rates for different types of checks cashed using services at businesses such as Currency Exchanges.
According to an industry report, the average check amount is $463.83.
|
Type of Check (@$100) |
Current Rate |
Proposed Rate Hike |
Agreed |
|
Public assistance |
1.40% + $1 |
2.50% + $1 |
1.50% |
|
Government check (e.g. *EITC) |
1.40% + $1 |
2.50% + $1 |
2.40% + $1 |
|
Printed paycheck |
1.40% + $1 |
2.50% + $1 |
2.40% + $1 |
|
Personal check |
1.40% + $1 |
2.50% + $1 |
2.45% + $1 |
|
All other (e.g., insurance) |
1.40% + $1 |
2.50% + $1 |
2.40% + $1 |
According to industry data, only 7 percent of checks are greater than $1,250.
|
Type of Check (@$1250.01) |
Current Rate |
IDFPR Rate |
Agreed |
|
Public assistance |
2.25% |
3.00% |
1.50% |
|
Government check (e.g. *EITC) |
2.25% |
3.00% |
3.00% |
|
Printed paycheck |
2.25% |
3.00% |
3.50% |
|
Personal check |
2.25% |
3.00% |
3.50% |
|
All other (e.g., insurance) |
2.25% |
3.00% |
3.50% |
According to industry data, only 7 percent of checks are greater than $1,250.
|
Type of Check (@$1250.01) |
Current Rate |
IDFPR Rate |
Agreed |
|
Public assistance |
2.25% |
3.00% |
1.50% |
|
Government check (e.g. *EITC) |
2.25% |
3.00% |
3.00% |
|
Printed paycheck |
2.25% |
3.00% |
3.50% |
|
Personal check |
2.25% |
3.00% |
3.50% |
|
All other (e.g., insurance) |
2.25% |
3.00% |
3.50% |
*EITC = Earned Income Tax Credit
