8.2 percent of U.S. households are "unbanked"

[zoog]

In the aftermath of one of the worst recessions in history, more Americans have limited or no interaction with banks, instead relying on check cashers and payday lenders to manage their finances, according to a new federal report.

Not only are these Americans more vulnerable to high fees and interest rates, but they are also cut off from credit to buy a car or a home or pay for college, the report from the Federal Deposit Insurance Corp. said.

Released Wednesday, the study found that 821,000 households opted out of the banking system from 2009 to 2011 and that the so-called unbanked population grew to 8.2 percent of U.S. households...

more from washington post

[c1ue]

Re: 8.2 percent of U.S. households are "unbanked"

Not only are these Americans more vulnerable to high fees and interest rates, but they are also cut off from credit to buy a car or a home or pay for college, the report from the Federal Deposit Insurance Corp. said.

I do wonder just how fees in traditional banks compare vs. the 1% check cashers charge. The interest rate portion is just ridiculous.

[thriftyandboringinohio]

Re: 8.2 percent of U.S. households are "unbanked"

I saw that story make a big splash the last couple days.
Though I haven't researched the subject, it does not surprise me.

The poorest Americans have never qualified for credit cards. They have no spare money to deposit in a passbook savings account, and stay away from checking accounts because the inevitable fees from overdrafts and bounced checks hurt them too much (often the bank gets fed up and just closes the account). I have one old and dear friend who has been "unbanked" for most of the last 20 years for those reasons.

Next time you go to a big grocery store or pharmacy look at the customer service counter, they likely sell money orders.
That's how the "unbanked" poor pay the utility bills and rent.

[zoog]

Re: 8.2 percent of U.S. households are "unbanked"

I saw that story make a big splash the last couple days.
Though I haven't researched the subject, it does not surprise me.

The poorest Americans have never qualified for credit cards. They have no spare money to deposit in a passbook savings account, and stay away from checking accounts because the inevitable fees from overdrafts and bounced checks hurt them too much (often the bank gets fed up and just closes the account). I have one old and dear friend who has been "unbanked" for most of the last 20 years for those reasons.

Next time you go to a big grocery store or pharmacy look at the customer service counter, they likely sell money orders.
That's how the "unbanked" poor pay the utility bills and rent.

Yeah, it's really nothing new. I just hadn't seen any statistics before. The FDIC report noted a slight increase in the percentage, equating to roughly 820,000 additional households from 2009 to 2011.