If you are one of the people who changes some type of check in money businesses, know that the rates have changed since January and check that they are not charging you more.
The administration of newly elected Governor Kathy Hochul reduced the exchange rate from 2.27% to 1.5% for government benefit checks and 2.2% for others.
Lucio Cumes says that before he paid up to $40 dollars per paycheck and now only $15.
-How beneficial for you as a Hispanic worker, an immigrant, is a place like this where you can cash your check?
“For me this is the best bank. Because I have gone to other banks and they charge me a lot,” said Lucio.
Lucio.
Most of those who use this service in New York are immigrants like Cumes. minorities and senior citizens who reside far from traditional banks.
If it disappears, because its owners consider that it does not provide them with sufficient benefits, it would greatly affect these sectors of the community.
Due to the rate cut, the owners have filed a lawsuit against Hochul, alleging that they will have to make layoffs and even close.
-So it would affect you a lot if they took these places from you?
“It affects me because I change my check and my expenses would go up,” added Lucio.
The new state government alleges that the rates were not up to date with the current cost of living, affecting consumers. And that exchange stores are not entitled to automatic annual increases just because their services are essential.
According to government data, before Hochul became governor, check cashers had received automatic increases in 2019, 2020 and 2021 and the law ended that.
But in our investigation we were able to observe that in at least one of the businesses we visited they continue to charge the 2.27% they used to, alleging “lack of knowledge”. Faced with the dilemma, Cumes has a chosen one.
-Who do you agree with? To these sites that are providing you a service or to the state that wants to save you money?
“The state”.
She has more money to send to her three children, she says, in Guatemala.
So far there are four financial institutions that have sued the governor’s administration. Her office has yet to respond.
