People who use Illinois currency exchanges will pay less in fees to cash certain types of checks. It’s part of an overhaul of the state’s check cashing fee structure.
The fees for cashing state assistance checks went down, while rates on payroll and personal checks both went up. Customers will also pay different fees depending on how much the check is worth.
That was the deal reached by the currency exchange industry, which indicated higher rates were needed to cover their costs.
But Conner Kerrigan, who works at a Chicago employment agency, said the fee hikes on paychecks spell trouble for those who don’t earn much money.
"Each percentage point currency exchange companies take out of the paycheck of a low-income family, is another drop in the bucket that will eventually drown the marginalized people of the state of Illinois in economic immobility," Kerrigan said.
Currency exchanges are often the only place people without bank accounts can go to get money.The new rate rules will take effect in July.