As some of my friends have pointed out offline part of payday loan profits come from check cashing particularly for illegal immigrants who cannot open a bank account. In related news, recent figures suggest that most of the growth in the poverty rate in U.S. has been among Hispanics. As Robert Samuelson in an Op-ed in the Washington Post (linked here) stated the below figures:
“From 1990 to 2006, the number of poor Hispanics increased 3.2 million, from 6 million to 9.2 million. Meanwhile, the number of non-Hispanic whites in poverty fell from 16.6 million (poverty rate: 8.8 percent) in 1990 to 16 million (8.2 percent) in 2006. Among blacks, there was a decline from 9.8 million in 1990 (poverty rate: 31.9 percent) to 9 million (24.3 percent) in 2006. “
We can debate our immigration policy, but the figures shown by Samuelson suggest that the recent trend in poverty are in part caused by immigration.