Banks forcing out check-cash firms - 2005-05-09 -
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Published on: 5/6/2005
Last Visited: 5/9/2005
There has been a lack of clarity from the federal regulators, and the banks are making a business decision to protect themselves," said Jim Ball, president of the California Financial Services Association.
As banks tried to comply with the regulations, Ball said, some took a very conservative interpretation of the Bank Secrecy Act and Patriot Act and decided to cut their MSB customers, especially on the East Coast, where many independent operations closed for lack of a bank.
"This is another aspect of the Patriot Act that is just not well thought out.That was an act passed quickly by politicians in reaction to a terrible emotional event," Ball said."Some horrible things have happened where people have lost their livelihoods because they don't have access to a bank, and then you can't sell the business."
Many of the check-cashers in California are large chains, and the large operations tend to have strong financial controls.Ball owns Fast Cash, which has 34 locations from San Francisco to Fresno.
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