Reinvestment Alert #10: Currency Exchanges Add to Poverty Surcharge for Low-Income Residents

Erin Mullen, Malcolm Bush and Samantha Weinstein

This study finds that minorities and lower-income people who use these "fringe banks" pay higher prices for basic financial services. In addition to demonstrating the high costs charged by CEs, this Alert makes recommendations aimed at encouraging greater use of banks by these CE users, at reducing excessive fees charged by CEs, and at increasing consumer awareness of the relative costs of financial services.