When your credit is shot banks are really reluctant to take you on as a new account. He probably owes his current bank tons of money so probably doesn't want to deposit his only income there. Opening a new account requires a background check (when I opened mine they told me it was to verify I wasn't blacklisted from writing checks) and possibly a credit check.
Sometimes the check cashing store is your only choice. And they aren't all bad. They may get you on the check cashing fee, but a ding at a regular bank can put you in an even worse position ($29 overdraft fee, $35 NSF fees).
The check cashing stores are popular in poor areas because these people may only get $200-400/month and charge $5-20. It's a fixed cost that anyone can factor in quickly. Keeping a mental register of how much you have in the bank is harder than knowing what's exactly in your wallet.
Sometimes the check cashing store is your only choice. And they aren't all bad. They may get you on the check cashing fee, but a ding at a regular bank can put you in an even worse position ($29 overdraft fee, $35 NSF fees).
The check cashing stores are popular in poor areas because these people may only get $200-400/month and charge $5-20. It's a fixed cost that anyone can factor in quickly. Keeping a mental register of how much you have in the bank is harder than knowing what's exactly in your wallet.