Wescom Credit Union purchased Area Check Cashing Centers in June 2007 for $3.9 million. Kinecta Federal Credit Union purchased Nix Check Cashing in August 2007 for $45 million. Nix has 55 locations that were converted to Kinecta branches. The payday lenders are held as CUSOs. Kinecta plans to convert the customers of Nix to credit union members and take the operation within the credit union over the next few years.
These are bold moves for credit unions and are to be applauded. The purchases bought branch locations, an instant surge in membership base and expertise in payday lending which is being used by current members of at all demographic levels. Even the banks had nice things to say about the purchases as credit unions reaching out to serve the underserved. However the perception, studies show that the clientele at the check cashing services is not as underserved as one might guess. Look for other purchases of check cashing services in other areas of the country.