# Wal Mart Win **URL:** \ **Category:** Miscellaneous and Personal Stuff I Must Share\ **Created:** [March 19, 2010, 10:54pm UTC](https://boards.straightdope.com/t/wal-mart-win/533076 "2010-03-19T22:54:43Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![i\_am\_a\_scientist](https://avatars.discourse-cdn.com/v4/letter/i/f07891/32.png) [@i\_am\_a\_scientist](https://boards.straightdope.com/u/i_am_a_scientist)\ **Post date:** [March 19, 2010, 10:54pm UTC](https://boards.straightdope.com/t/wal-mart-win/533076/1 "2010-03-19T22:54:43Z")
They’re getting into the check-cashing racket, [except at considerably lower prices as compared to usurious payday lender joints](http://www.economist.com/blogs/freeexchange/2010/03/payday_lending). From The Economist: > [@](#): > > This just continues to illustrate how interesting Wal-Mart is as a phenomenon and a mirror of American society and culture. Wal-Mart clearly has market power, which it occasionally uses abusively, if not necessarily illegally. But sometimes, it uses its market power to accomplish things government entities are unwilling or unable to accomplish—pressing environmental standards on its suppliers, for instance, or reining in abusive lenders. Indeed. I’m not much of a Wal Mart fan, but it’s great to see them put the screws to the Pay Day loansharks. ---
**Author:** ![AClockworkMelon](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/aclockworkmelon/32/10803_2.png) [@AClockworkMelon](https://boards.straightdope.com/u/AClockworkMelon)\ **Post date:** [March 19, 2010, 11:01pm UTC](https://boards.straightdope.com/t/wal-mart-win/533076/2 "2010-03-19T23:01:22Z")
I browsed through the link but I’m still not sure- is Wal-Mart just cashing checks or is it actually issuing payday loans? If not, how would it rein in lenders? ---
**Author:** ![i\_am\_a\_scientist](https://avatars.discourse-cdn.com/v4/letter/i/f07891/32.png) [@i\_am\_a\_scientist](https://boards.straightdope.com/u/i_am_a_scientist)\ **Post date:** [March 19, 2010, 11:17pm UTC](https://boards.straightdope.com/t/wal-mart-win/533076/3 "2010-03-19T23:17:47Z")
From the first three sentences: > [@](#): > > Cheque-cashing and payday lending businesses are very common in poor neighbourhoods around the country. They provide the most basic financial services to unbanked customers, at what are typically described as usurious rates of interest—often 400% APR or more. And indeed, the entry of Wal-Mart, which also serves poorer communities, is sure to place significant downward pressure on the rates charged by other lenders. I think the idea is that payday lenders also provide check-cashing services; Wal Mart’s presence will cut into their check-cashing profits. ---
**Author:** ![AClockworkMelon](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/aclockworkmelon/32/10803_2.png) [@AClockworkMelon](https://boards.straightdope.com/u/AClockworkMelon)\ **Post date:** [March 19, 2010, 11:33pm UTC](https://boards.straightdope.com/t/wal-mart-win/533076/4 "2010-03-19T23:33:59Z")
> [@i\_am\_a\_scientist](#): > > From the first three sentences: > I think the idea is that payday lenders also provide check-cashing services; Wal Mart’s presence will cut into their check-cashing profits. In an effort to regain that lost profit, isn’t it foreseeable that they’ll hike the interest on their loans? ---
**Author:** ![i\_am\_a\_scientist](https://avatars.discourse-cdn.com/v4/letter/i/f07891/32.png) [@i\_am\_a\_scientist](https://boards.straightdope.com/u/i_am_a_scientist)\ **Post date:** [March 20, 2010, 12:03am UTC](https://boards.straightdope.com/t/wal-mart-win/533076/5 "2010-03-20T00:03:51Z")
> [@AClockworkMelon](#): > > In an effort to regain that lost profit, isn’t it foreseeable that they’ll hike the interest on their loans? Possibly, [though their rates are capped](http://en.wikipedia.org/wiki/Payday_loan#United_States) Wiki link (above): > [@](#): > > Payday lending is legal and regulated in 37 states. In Georgia and 12 other states, it is either illegal or not feasible, given state law.When not explicitly banned, laws that prohibit payday lending are usually in the form of usury limits: hard interest rate caps calculated strictly by APR. I could be overly optimistic, but I don’t think they’ll have much luck lobbying [in this market, and in light of their infamous reputation] for higher caps to offset losses suffered from Wal Mart’s competition. ---
**Author:** ![Cliffy](https://avatars.discourse-cdn.com/v4/letter/c/59ef9b/32.png) [@Cliffy](https://boards.straightdope.com/u/Cliffy)\ **Post date:** [March 20, 2010, 12:10am UTC](https://boards.straightdope.com/t/wal-mart-win/533076/6 "2010-03-20T00:10:49Z")
Wal-Mart is a blight on society because of its tendency to completely destroy all the smaller businesses that compete in any sector they decide to enter. But I’m not crying over this one. –Cliffy ---
**Author:** ![Chronos](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/chronos/32/134_2.png) [@Chronos](https://boards.straightdope.com/u/Chronos)\ **Post date:** [March 20, 2010, 12:22am UTC](https://boards.straightdope.com/t/wal-mart-win/533076/7 "2010-03-20T00:22:33Z")
If Wal-Mart does go into the payday loan aspect of the business, too, and charges lower rates than the sharks, then the sharks won’t be able to make up their profit by increasing rates, since their [del]victims[/del]customers wouldn’t go to them in any event. I’m seeing net benefit to society on the one hand, and profits for Wal-Mart on the other, here. ---
**Author:** ![GameHat](https://avatars.discourse-cdn.com/v4/letter/g/ed655f/32.png) [@GameHat](https://boards.straightdope.com/u/GameHat)\ **Post date:** [March 20, 2010, 1:29am UTC](https://boards.straightdope.com/t/wal-mart-win/533076/8 "2010-03-20T01:29:25Z")
I hate, hate Walmart. but if they actually go honestly into this market and charge “fair” rates (article claims $3 - $6 / check, which might be ok once you get near the $1,000 check hypothetical) they’ll be doing a lot of people some good. Fact is, a lot of low income people with no documented financial history get absolutely screwed by the strip-mall “financial institutes” that charge ridiculous rates on basic financial services that the middle-class takes for granted. On the one hand, lots of these places argue that these are high-risk customers, and that they need these rates to keep up with the defaults and the frauds. On the other hand, people have gone to federal prison for loan-sharking on lower interest rates. My personal opinion is that the strip-mall sharks do more harm than good to the financially vulnerable - people with low income, recent immigrants, etc. So we’ll see how it goes. It’s a needed service. If Walmart does it more fairly than the strip-mall jackals, well, I’ll give them a few points. …I’ll still never shop there if I can help it, though. 😃 ---
**Author:** ![Zsofia](https://avatars.discourse-cdn.com/v4/letter/z/7bcc69/32.png) [@Zsofia](https://boards.straightdope.com/u/Zsofia)\ **Post date:** [March 20, 2010, 1:36am UTC](https://boards.straightdope.com/t/wal-mart-win/533076/9 "2010-03-20T01:36:12Z")
> [@Cliffy](#): > > Wal-Mart is a blight on society because of its tendency to completely destroy all the smaller businesses that compete in any sector they decide to enter. But I’m not crying over this one. > > –Cliffy I know, what an ethical quandary! You can’t exactly get mad at Wal-Mart for putting small business payday lenders out of business, now can you? ---
**Author:** ![Chronos](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/chronos/32/134_2.png) [@Chronos](https://boards.straightdope.com/u/Chronos)\ **Post date:** [March 20, 2010, 2:00am UTC](https://boards.straightdope.com/t/wal-mart-win/533076/10 "2010-03-20T02:00:12Z")
Personally, I’ve never seen the sense in getting mad at Wal-Mart for putting small businesses out of business, anyway. If you’re going to blame anyone, blame the customers who choose to shop there rather than at the mom-and-pop places. ---
**Author:** ![tr0psn4j](https://avatars.discourse-cdn.com/v4/letter/t/958977/32.png) [@tr0psn4j](https://boards.straightdope.com/u/tr0psn4j)\ **Post date:** [March 20, 2010, 2:16am UTC](https://boards.straightdope.com/t/wal-mart-win/533076/11 "2010-03-20T02:16:08Z")
> [@Chronos](#): > > Personally, I’ve never seen the sense in getting mad at Wal-Mart for putting small businesses out of business, anyway. If you’re going to blame anyone, blame the customers who choose to shop there rather than at the mom-and-pop places. And you can’t blame the customers because they’re doing what they want. I’ve never really understood the Wal Mart hate. Either way, this is definitely a good thing. ---
**Author:** ![i\_am\_a\_scientist](https://avatars.discourse-cdn.com/v4/letter/i/f07891/32.png) [@i\_am\_a\_scientist](https://boards.straightdope.com/u/i_am_a_scientist)\ **Post date:** [March 20, 2010, 2:33am UTC](https://boards.straightdope.com/t/wal-mart-win/533076/12 "2010-03-20T02:33:39Z")
Wal Mart can sell toilet paper and groceries and underwear at prices which mom and pops can’t compete. In that respect it’s a net benefit for the poor and lower-middle class (and middle class I guess). I don’t shop in Wal Marts, personally, but if I had 3 kids and was living on $8/hr I wouldn’t select more expensive lettuce and/or socks because it benefited a different retailer, I would want to feed and clothe my family. Wal Mart is what it is, a result of globalization. Don’t hate the player, hate the game [/michael irvin] ---
**Author:** ![BigT](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/bigt/32/12044_2.png) [@BigT](https://boards.straightdope.com/u/BigT)\ **Post date:** [March 20, 2010, 4:19pm UTC](https://boards.straightdope.com/t/wal-mart-win/533076/13 "2010-03-20T16:19:24Z")
I’ve cashed a check at Walmart before, because I accidentally didn’t have any other way to pay with me. But I take it y’all are talking about payday loans, and, around here, that would really help a lot of people. ---
**Author:** ![Chimera](https://avatars.discourse-cdn.com/v4/letter/c/8e8cbc/32.png) [@Chimera](https://boards.straightdope.com/u/Chimera)\ **Post date:** [March 20, 2010, 4:44pm UTC](https://boards.straightdope.com/t/wal-mart-win/533076/14 "2010-03-20T16:44:20Z")
Used to absolutely hate Walmart and refuse to go there, but I started doing some grocery shopping there when I got close to filing for bankruptcy. (Example: Tombstone Pizza at the grocery store = $5.99. Same pizza at Walmart, anywhere from $2.50 to 3.84, depending on the week.) Now I’m using them to cash my paychecks and tax refund checks while I’m in the bankruptcy process, since I don’t want my bank getting funny with my money. If I ever go back to being financially well off, I’m sure I’ll refuse to shop there again. 😉 ---
**Author:** ![Little\_Nemo](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/little_nemo/32/3120_2.png) [@Little\_Nemo](https://boards.straightdope.com/u/Little_Nemo)\ **Post date:** [March 20, 2010, 5:53pm UTC](https://boards.straightdope.com/t/wal-mart-win/533076/15 "2010-03-20T17:53:34Z")
> [@](#): > > I’ve never really understood the Wal Mart hate. Because many of us believe there should be free market competition. ---
**Author:** ![Dewey\_Finn](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dewey_finn/32/4222_2.png) [@Dewey\_Finn](https://boards.straightdope.com/u/Dewey_Finn)\ **Post date:** [March 20, 2010, 6:06pm UTC](https://boards.straightdope.com/t/wal-mart-win/533076/16 "2010-03-20T18:06:56Z")
> [@Chimera](#): > > Used to absolutely hate Walmart and refuse to go there, but I started doing some grocery shopping there when I got close to filing for bankruptcy. (Example: Tombstone Pizza at the grocery store = $5.99. Same pizza at Walmart, anywhere from $2.50 to 3.84, depending on the week.) But it’s not always the same product being sold at Wal-Mart. For example, a few years ago Wal-Mart wanted to sell Levi Strauss jeans but a lower price than they were being sold elsewhere. The answer was to develop a new line called Levi’s Signature, that could be sold at a lower price point. And a few months ago when I was visiting my mother, she asked me to get a few things at Wal-Mart, including Thomas’ English Muffins. When I couldn’t find them at Wal-Mart, I bought them from the IGA grocer next door. The next morning, she noticed that the muffins were different from the ones she usually got from Wal-Mart. And here’s a quote from a New York Times [article](http://query.nytimes.com/gst/fullpage.html?res=9500E7DB113AF933A15751C0A9639C8B63) about how manufacturers are coping with Wal-Mart, “A few manufacturers, though, are trying to find a way to live with deep-discount mass merchandisers without sacrificing their traditional network of smaller retailers – or their traditional profit margins. \*\*These companies, like Toro and Levi Strauss, are offering specially made low-cost goods to the big boxes while continuing to sell higher-priced products through specialty stores. \*\*” (Bolding added) Now you may be perfectly happy with the product you’re buying from Wal-Mart. You should just be aware that it’s not always the same thing at a lower price. As for this story, I actually don’t have a problem with it. It’s a net good if Wal-Mart can lower the price of financial services for people. ---
**Author:** ![AClockworkMelon](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/aclockworkmelon/32/10803_2.png) [@AClockworkMelon](https://boards.straightdope.com/u/AClockworkMelon)\ **Post date:** [March 20, 2010, 6:08pm UTC](https://boards.straightdope.com/t/wal-mart-win/533076/17 "2010-03-20T18:08:55Z")
> [@Little\_Nemo](#): > > Because many of us believe there should be free market competition. You mean the sort of competition where nobody competes? Wal-Mart is the result of a free market. ---
**Author:** ![PatriotGrrrl](https://avatars.discourse-cdn.com/v4/letter/p/9dc877/32.png) [@PatriotGrrrl](https://boards.straightdope.com/u/PatriotGrrrl)\ **Post date:** [March 20, 2010, 6:58pm UTC](https://boards.straightdope.com/t/wal-mart-win/533076/18 "2010-03-20T18:58:11Z")
> [@Little\_Nemo](#): > > Because many of us believe there should be free market competition. Just as long as no one gets _too_ free, right? ---
**Author:** ![Little\_Nemo](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/little_nemo/32/3120_2.png) [@Little\_Nemo](https://boards.straightdope.com/u/Little_Nemo)\ **Post date:** [March 20, 2010, 7:02pm UTC](https://boards.straightdope.com/t/wal-mart-win/533076/19 "2010-03-20T19:02:11Z")
> [@](#): > > You mean the sort of competition where nobody competes? Wal-Mart is the result of a free market. > [@](#): > > Just as long as no one gets too free, right? A lot of people say they support a free market without having any idea what it means. ---
**Author:** ![Larry\_Mudd](https://avatars.discourse-cdn.com/v4/letter/l/f14d63/32.png) [@Larry\_Mudd](https://boards.straightdope.com/u/Larry_Mudd)\ **Post date:** [March 20, 2010, 7:26pm UTC](https://boards.straightdope.com/t/wal-mart-win/533076/20 "2010-03-20T19:26:59Z")
> [@Zsofia](#): > > I know, what an ethical quandary! You can’t exactly get mad at Wal-Mart for putting small business payday lenders out of business, now can you? Clearly, Wal\*Mart should look into marketing central nervous system stimulants next. [Next page](https://boards.straightdope.com/t/wal-mart-win/533076.md?page=2)