Helping the ‘unbanked’: California mulls entering banking business to serve disadvantaged consumers

  • 📰 CalMatters
  • ⏱ Reading Time:
  • 51 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 24%
  • Publisher: 63%

Россия Новости Новости

Россия Последние новости,Россия Последние новости

CalAccount would be a state-run public bank, but the state would likely involve another bank or financial partner. It would offer such services as free checking, overdraft protection, ATM cards and savings accounts to 'unbanked' people,state officials said.

“This is a critical distinction that must be made; individuals who utilize payday lenders and other high-cost loan products do so because they have inadequate cash flow, not because they lack access to banking services,” a coalition of business and banking groups wrote to legislators.James Hamilton, an economics professor at University of California San Diego, said where a public bank gets its money to lend and how transparent it is will be important.

One reason: low-income consumers are often burdened by bank fees that others with higher balances don’t have to pay. Black households are almost 2 times more likely to pay overdraft fees than white households, and Latino households are 1.4 times more likely, says a study by theIn 2021, 11% of U.S.

Due to public pressure, some banks in 2021 reduced fees. But by third quarter the fees were back up and banks collected $11 billion that year, the Roosevelt Institute said. Online banking through a financial tech company, like Williams did, is an option. But those companies aren’t registered banks. They often partner with banks to offer their services. And some have attractedIf the state operates a public bank, people could get their paychecks, public assistance benefits and tax returns directly deposited, proponents say.

Meanwhile state and federal governments should more actively regulate banking and protect consumers, wrote Emily DiVito, author of The Roosevelt Institute’s report.

 

Спасибо за ваш комментарий. Ваш комментарий будет опубликован после проверки

dahboo7 Bruh check it out.

Мы обобщили эту новость, чтобы вы могли ее быстро прочитать.Если новость вам интересна, вы можете прочитать полный текст здесь Прочитайте больше:

 /  🏆 261. in RU

Россия Последние новости, Россия Последние новости

Similar News:Вы также можете прочитать подобные новости, которые мы собрали из других источников новостей

Helping the ‘unbanked’: California mulls entering banking business to serve disadvantaged consumersStudies say 1 in 4 Californians lacks full access to banks and many pay big fees. A state commission is weighing how to provide public banking options, such as no-fee checking accounts.
Источник: KPBSnews - 🏆 240. / 63 Прочитайте больше »