N.Y. RECOGNIZES A LEGITIMATE ROLE FOR CHECK CASHERS

To the Editor:

Your Jan. 7 news brief "N.Y. Banking Dept. Targets the Unbanked" [page 3] missed the point that my agency and the New York City Department of Consumer Affairs were making in launching "Bank on New York," a consumer education campaign designed to encourage New Yorkers to take advantage of basic banking accounts and to use their tax refunds to open basic bank accounts.

I was very surprised to learn that our program was masquerading as a campaign to do away with check cashers -- and that I was actively discouraging people from using check cashers. Nothing could be further from the truth.

My department licenses and regulates all of the check cashers in this state. We know better than most how valuable they are to our economy and how essential the services they provide are to hundreds of thousands of New Yorkers.

In fact, I would paraphrase what Mr. [Gerald] Goldman, counsel to the check cashers trade group, had to say in the article: Not everybody can have a bank account.

We know there are many reasons that people choose not to use banks. People who want and need to use check cashers should use check cashers.

What I did say is that you can't open a savings account at a check casher, and that I hope some of those who are unbanked will consider opening a bank account, especially as a safe, secure means to saving money.

Doing this and using a check casher for everyday transactions are not mutually exclusive endeavors.


Diana L. Taylor

Superintendent of Banks

State of New York Banking Department New York

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