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Fringe Banking

John Biewen of Minnesota Public Radio reports on the rise of the so-called fringe banks...pawn shops and check cashing businesses which charge very high rates of interest and cater to the poor. An increasing number of poor families have no relationship with a traditional bank or savings and loan. Advocates for the poor say that higher and more pervasive fees are pushing the poor out of banks and into the pawn shops. Bankers disagree and suggest there are lots of reasons why poor people prefer "fringe" banking.

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