2.3.2 Using alternative financial arrangements

You may be able to choose from a variety of financial organizations that will cash cheques and provide other services. Some of these, such as finance companies, cheque-cashing companies and payday loan companies, may offer to cash cheques without the hold period that conventional financial institutions often require.

In some communities, other forms of financial institutions may also be available that provide services that are traditional in other countries. They may give friendly service in languages that regular financial institutions do not, and have a deep understanding of the financial systems in other countries. These institutions are often based on personal connections and trust. They are not regulated like regular financial institutions, and the services they offer may be very limited compared to those offered by regular financial institutions.

Check alternative financial organizations carefully before you use them. Some may offer convenience or services that conventional financial institutions do not, but they are not regulated in the same way that other financial institutions are. You don't have the protections that are available with regular banks, trust companies, credit unions and caisses populaires. In addition, service fees and interest charges are often high.

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