Banks for the Poor

South Bend Tribune 
April 28, 2009

Research reveals that there are 28 million unbanked and 44 million underbanked residents nationwide, and approximately 30 percent of those living in urban areas fall into the unbanked category. These individuals pay about $1 billion each year in fees to check-cashing stores, pawn shops, and payday lenders. In response, the National League of Cities has rolled out the "Bank on Cities" campaign to partner with local banks on consumer education and outreach initiatives. With the Cities for Financial Empowerment Coalition, the league is promoting financial literacy and calling for deposit, payment, credit, and electronic products designed for unbanked consumers. Furthermore, leaders from cities across the country plan to push for new state laws and federal regulations to safeguard consumers by eliminating automatic enrollment into overdraft protection programs, among other solutions.

Abstract News © Copyright 2008 INFORMATION, INC.