''Bank Fees Are a Credit Union's Best Friend''
"Something is wrong when keeping cash in the kitchen cookie jar seems a reasonable substitute for your bank.''
More info"Hidden bank fees are pushing the working poor out of mainstream banking and into riskier, more expensive alternatives to managing their personal finances. A new study released by the Pew Charitable Trusts provides a stark snapshot of how banks’ embrace of sneaky fees hurt the most vulnerable consumers. One advocate says this illustrates a broader crisis of transparency that leaves all consumers without vital information about the places they trust to keep their money. The Pew study interviewed 2,000 low-income families in Los Angeles once in 2009 and then again a year later, asking them both times about what services they used for personal banking. Over the course of the year, 8 percent of participants opened a bank account, but 13 percent closed theirs. Nearly a third of people said the reason they left was because of unexpected fees, while slightly more than a quarter said they left the banking system because of loss of a job or income."
'These fees are really a problem for consumers,' says Susan Weinstock, director of safe checking project at Pew Charitable Trusts. 'Our response to this data finding is that we think there needs to be a disclosure box for checking accounts. We think this would provide an easy summary look at an account so you know what you’re getting into before you get into it,' she says."
- Date added:
- Oct 21, 2011
- Project:
- Safe Banking Opportunities Project
Related Resources
Fees and the Unbanked
The Pew Health Group’s Safe Checking in the Electronic Age Project investigated checking accounts offered by the ten largest U.S. banks, which held nearly 60 percent of the nation’s deposit volume.
View an interactive graphic presenting a state-by-state overview of Underbanked or Unbanked households.
More info''Fees Help Drive Working Poor From Banks''
"'Hidden or unexpected' fees are the No. 1 reason given by the working poor for closing bank accounts, a recent study found. The study by the Safe Banking Opportunities Project, a project of the Pew Health Group, surveyed 2,000 predominantly low-income, Hispanic households in the Los Angeles area in a two-phase study. Study participants were screened and recruited through a door-to-door, interviewer-administered survey."
More infoLos Cargos Ocultos O Inesperados Son Mencionados Como La Razón Principal Por La Cual Los Trabajadores Pobres Cierran Cuentas de Banco
Los "cargos ocultos o inesperados" fueron mencionados como la razón principal por la cual los trabajadores pobres del Gran Los Ángeles, aquellos que tienen empleo pero que incluso así permanecen en pobreza relativa, cerraron cuentas de banco el pasado año, por encima de razones como la pérdida del empleo o la falta de dinero, según una encuesta en hogares predominantemente hispanos y de bajos ingresos dada a conocer por el Safe Banking Opportunities Project (Proyecto Oportunidades para Banca Segura) del Pew Health Group.
More infoHidden or Unexpected Fees Cited as Top Reason Working Poor Close Bank Accounts
“Hidden or unexpected fees” were cited as the number one reason Greater Los Angeles’ working poor – those who are employed yet remain in relative poverty– closed bank accounts in the past year, surpassing job loss or lack of money, according to a survey of predominately Hispanic, low-income households released by the Pew Health Group’s Safe Banking Opportunities Project.
Slipping Behind
"Hidden or unexpected fees” were cited as the number one reason Greater Los Angeles’ working poor, those who are employed yet remain in relative poverty, closed bank accounts in the past year, surpassing job loss or lack of money, according to a survey of predominately Hispanic, low-income households.
More infoRegulatory Comment: Defining Larger Participants in Certain Consumer Financial Products and Services Markets
This regulatory comment discusses the Consumer Financial Protection Bureau (CFPB) proposed rule on defining larger participants in certain markets related to related to consumer financial products and services. Based on work at the Pew Health Group by the Safe Small Dollar Loans Research Project and The Safe Checking in the Electronic Age Project on small dollar loans and checking accounts, we urge the CFPB to issue an initial rule broadly covering nondepository markets. The rule should permit comprehensive supervision by the CFPB. The CFPB's supervisory authority must be broader than its rulemaking authority because examination of the market informs rulemaking needs. More info''Consumers Hold High Hopes for New Bureau''
''If you've ever thought someone was playing fast and lose with the rules on your credit cards, credit score or mortgage, but you had no idea where to go with your complaint, you now have a place to turn.''
More info''To Bank Or Not To Bank''
"A new study from the Pew Health Group shows a growing number of low income and minority families are using alternative financial services instead of the traditional banking system."
More info''Many shun bank accounts but pay more for financial services''
"Unbanked and underbanked consumers are also less likely to save, says Eleni Constantine, director of the Pew Health Group's Financial Services Portfolio. In a survey of low-income Los Angeles households, Pew found that more than twice as many consumers who had bank accounts said they were earning enough to pay their bills and save for the future than those who didn't have bank accounts."
More infoPew Health Group Report Measures Financial Habits of Low-Income Families in Greater Los Angeles
Half of low-income families in Greater Los Angeles turn to costly and unregulated alternative financial services (AFS) rather than banks to meet their monetary needs, according to a new survey released today by the Pew Health Group’s Safe Banking Opportunities Project.
More info''Report Measures Financial Habits of Low-Income Families''
"Half of low-income families in Greater Los Angeles turn to costly and unregulated alternative financial services (AFS) rather than banks to meet their monetary needs, according to a new survey released today by the Pew Health Group’s Safe Banking Opportunities Project"
More infoUnbanked By Choice
This study compares banked and unbanked families across several categories including financial behavior, economic status and perceptions of the financial service industry.
More infoRegulatory Comment: National Unbanked and Underbanked Household Survey
The Pew Health Group’s Safe Banking Opportunities Project responds to the FDIC’s request for comment, published at 75 FR 20357, (April 13, 2010) on potential changes to the survey instrument for the National Unbanked and Underbanked Household Survey.
More info
''Programs aim to aid 'unbanked'''
"Dozens of cities are launching programs to sign up low income people as customers at commercial banks so they can avoid the high fees typical of check cashing stores and payday lenders."
More info
