By Molly Matthews, DBJ Contributing Writer

    Some consumers call them legal loan sharks. Others refer to their services as payday loans. But leaders
in the check cashing industry say they provide a valuable service without banker's hours.
    "A lot of people think of check cashing companies as legal loan sharks, but we provide a service for people
who can't get money anywhere else," said Teresa Casburn of Speedee Cash in Cleveland. "For instance,
we just had a big rush for back to school supplies and clothes."
    Speedee Cash is the fourth largest check cashing company in Mississippi, with more than 20 offices
throughout the state. At the Cleveland office, only seven checks are currently uncollected, she said.
    "We don't do credit checks," said Casburn. "We require a car title and registration, a job and a phone
number. If there are more than two overdrafts in one month on a bank statement, we won't do business. They
must have a checking account open for a minimum of six months and four references that can be verified by
phone."
    According to the National Check Cashers Association, the number of outlets has doubled since 1990. In 1995,
business accounted for $50 billion in checks. More than 600 check cashing outlets have popped up
throughout Mississippi, with a recent surge in the Mississippi Delta, close to the casinos.
    Dan Robinson, president of Mississippi Check Cashers Association, said check-cashing outlets provide a
valuable service for short-term money through optional banking. The Robinson family owns 27 sites in
Mississippi.
    "Until legislation was passed last year, we were the only segment of the financial services market that was
unregulated," said Robinson, who initiated the organization of the statewide lobbying association in
1991 and was president for four years. About 41% of the check cashing offices are members of the
association.
    "There needed to be some form of regulation," he said. "Any time you're dealing with consumer's money, there
has to be some regulatory effort from the government because there are too many opportunities for business
owners to take advantage of consumers if it's not regulated."
    Regulations established fee caps of 18% on deferred deposit checks, 5% on payroll fees and 3% on
government checks. Legislation required businesses to be licensed through the department of banking and
consumer finance and prohibited rollovers. Rollovers occur when a customer pays a fee instead of picking up
a check. Instead, he writes another check for 14 days and pays another fee.
    "The legislation provided consumer protection and put everyone on a level playing field," he said.
    Since then, there's been an influx of out-of-state check cashing companies that have opened locations in
the state. Even with increased competition, business has remained steady, he said.
    "The market's pretty saturated, but there are still people opening locations," Robinson said. "Each
business has its own set of guidelines. Some will cash a check just by seeing a driver's license. We're not
as liberal with our money as that."
    Check cashing companies without strict guidelines favor quantity over quality, he said.
    "You could wind up losing money because a guy can cash a check, skip town, and there's no criminal recourse,"
Robinson said. "It's a civil matter but if you can't locate the customer, you can't even go to justice
court. That's the business they're in and they're assuming that risk."
    Contrary to popular belief, check-cashing outlets do not cater to indigent, poor people, Robinson said.
    "Most customers are middle-class, working class people," he said. "They have emergency needs that come
up between paychecks, such as a sick child or a car that needs repairs. Compared to NSF fees, we're not
that high. By the time a bank charges a $25 NSF fee and a merchant charges up to $30, that's $55 for one
NSF whether a check is for $5 or $500."
    Check cashing is the only branch of the financial services industry that does not require collateral, he said.
    "We only have a piece of paper with a signature," he said. "For that reason, our guidelines are strict. At
our offices, we look for certain qualifications. Applicants must have been on the job for at least two
years, lived at the same residence for two years, have a checking account open for a certain amount of time.
Our policy is that we will never cash more than half of a person's total net paycheck, even if the person
gets paid weekly. We're looking for stability if we're going to cash a check for a person."