MassINC said residents in 11 of the state’s former mill cities are less likely to have traditional bank accounts than most Bay State residents, forcing them to turn to costly alternatives such as check-cashing facilities.
Specifically, MassINC found the so-called Gateway Cities, such as Springfield, Holyoke, and Lawrence, are replete with check-cashing stores, pawn shops, rent-to-own stores, and auto title lenders that typically charge outsized fees and eye-popping interest rates. For instance, Springfield alone has 19 check cashers and six pawn shops listed in the telephone book, the report found, even though there didn’t seem to be a shortage of banks in the city.