Tax Refund Program Targets Underbanked

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American Banker 
September 3, 2010
Hopkins, Cheyenne
P. 3

To serve unbanked or underbanked Americans, the Treasury Department is rolling out a pilot program that will provide low-cost bank accounts into which their tax refunds will be directly deposited. The funds can be accessed via debit cards. Michael Barr, Treasury assistant secretary for financial institutions, says, "Far too often, unbanked and underbanked Americans are forced to turn to high-cost alternative financial products -- such as check-cashing and other services -- that take a big bit out of the savings of those who can least afford it." While the pilot program is for the tax season only, the bank accounts may eventually be used year round.
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