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Poverty in America: Millions of families too broke for bank accounts
NBC News ^ | April 22, 2013 | Bob Sullivan

Posted on 04/22/2013 3:18:36 PM PDT by rightwingintelligentsia

Sabino Fuentes-Sanchez hid $25,000 all around his house because he didn't trust banks. Lasonia Christon receives her Wal-Mart salary on a pre-paid debit card. Kim James was homeless for most of the past decade in part because she had no place to save money.

There are plenty of reasons people still live all-cash lives, but the sheer number who do it might surprise you. At a time when the majority of Americans use online banking, and some even deposit checks using their cellphone cameras, roughly eight percent of America's 115 million households don’t have a checking or savings account, according to census data compiled by the FDIC.

The numbers are far higher among minorities: More than 20 percent of African-Americans and Hispanics are essentially left out of the American banking system.

Frozen in the cash-only past, they face myriad “kick-them-while-they-are-down” situations where getting money costs money. Banks typically charge $6 to cash checks. Want to secure an apartment? Fee-based money orders are the only option. Without credit cards, they must turn to triple-digit interest rate payday loans for emergencies.

(Excerpt) Read more at inplainsight.nbcnews.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: banking; poverty

1 posted on 04/22/2013 3:18:36 PM PDT by rightwingintelligentsia
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To: rightwingintelligentsia

So now $25,000 counts as “too broke to afford a bank account.”

I smell BS.


2 posted on 04/22/2013 3:22:06 PM PDT by DarrellZero
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To: rightwingintelligentsia
what's this, new speak? hiding $25,000 in the house cause you don't trust banks is NOT the same thing as being to broke to have an account...
3 posted on 04/22/2013 3:22:39 PM PDT by Chode (Stand UP and Be Counted, or line up and be numbered - *DTOM* -ww- NO Pity for the LAZY)
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To: rightwingintelligentsia

Millions of families are on the dole in the US.

The taxpayers are their bank accounts.


4 posted on 04/22/2013 3:23:17 PM PDT by Steely Tom (If the Constitution can be a living document, I guess a corporation can be a person.)
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To: Chode
was homeless for most of the past decade in part because she had no place to save money.

I seriously doubt that's why she was homeless.

5 posted on 04/22/2013 3:24:01 PM PDT by TurboZamboni (Marx smelled bad & lived with his parents most his life.)
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To: rightwingintelligentsia

Cash only means they’re also left out of the tax system. Illegals GO HOME!!


6 posted on 04/22/2013 3:25:16 PM PDT by Jim Robinson (Resistance to tyrants is obedience to God!!)
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To: rightwingintelligentsia

No bank account = no traceability of transactions.


7 posted on 04/22/2013 3:26:23 PM PDT by pfflier
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To: TurboZamboni
100%
8 posted on 04/22/2013 3:26:39 PM PDT by Chode (Stand UP and Be Counted, or line up and be numbered - *DTOM* -ww- NO Pity for the LAZY)
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To: rightwingintelligentsia

I remember the days when all you had to do to open a bank account was to put a small sum of money in it. Nowadays I believe they check your credit rating. Dead beats need not apply.

As for the “6¢ per check charge” I’ve never paid a charge for writing a check at my C.U., nor have I paid for the checks themselves. 45 years at the same C.U.


9 posted on 04/22/2013 3:27:48 PM PDT by Graybeard58 (_.. ._. .. _. _._ __ ___ ._. . ___ ..._ ._ ._.. _ .. _. .)
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To: pfflier

No garnishment from bank accounts for child support. Our child support system is broken


10 posted on 04/22/2013 3:29:01 PM PDT by yldstrk (My heroes have always been cowboys)
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To: Graybeard58

I misread that, the article says $6 to cash checks, not 6¢.

Again, I’ve never paid a penny to my C.U. in 45 years.


11 posted on 04/22/2013 3:30:39 PM PDT by Graybeard58 (_.. ._. .. _. _._ __ ___ ._. . ___ ..._ ._ ._.. _ .. _. .)
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To: rightwingintelligentsia

In addition to the causes mentioned, the numbers might go up in the future as more people learn that, as of Dodd-Frank, you’re not a “depositor” any more — you’re an “unsecured creditor”, subject to being Cyprus-ed at any moment.


12 posted on 04/22/2013 3:32:12 PM PDT by jiggyboy (Ten percent of poll respondents are either lying or insane)
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To: DarrellZero

I’ve never know of an income requirement for a checking account - alot of teenagers have them.

But - if you screw up a checking account, and abandon it with a negative balance, it becomes very difficult to get another account at any other bank.


13 posted on 04/22/2013 3:32:12 PM PDT by lacrew (Mr. Soetoro, we regret to inform you that your race card is over the credit limit.)
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To: Graybeard58

The fee to cash a check is generally not levied to a customer of the bank. What they are referring to in this article is a non-customer walking into a bank branch and asking to cash a check.

When a bank cashes a check for a non-customer, that bank is bearing the risk that the check is fraudulent or that it will bounce. Since the check bearer doesn’t have an account, the bank has no recourse and has to eat the loss. Thus, most banks (and credit unions) charge a fee for this service.


14 posted on 04/22/2013 3:36:42 PM PDT by VegasCowboy ("...he wore his gun outside his pants, for all the honest world to feel.")
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To: Graybeard58
I’ve never paid a penny to my C.U. in 45 years.

That's because you are smart enough to use a credit union. The folks in the article walk down to whatever bank is closest (where they don't have an account) and cash their check and pay the fee. A fool and his money are soon parted.

Of course, folks who earn their money are much more likely to watch their expenses.

15 posted on 04/22/2013 3:38:06 PM PDT by Straight Vermonter (Posting from deep behind the Maple Curtain)
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To: rightwingintelligentsia

I’m moving to cash transactions, big time.


16 posted on 04/22/2013 3:41:41 PM PDT by Paladin2
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To: rightwingintelligentsia

There is a lot wrong in this country when people who don’t earn a living can go off and have 3-6 more children and get paid by usa tax dollars to not work.


17 posted on 04/22/2013 3:44:38 PM PDT by A CA Guy ( God Bless America, God Bless and keep safe our fighting men and women.)
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To: Jim Robinson

Cash only means they’re also left out of the tax system. Illegals GO HOME!!


Plenty of people are paid “under the table”. Not all are wet backs.


18 posted on 04/22/2013 3:44:42 PM PDT by laplata (Liberals don't get it. Their minds have been stolen.)
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To: laplata

But MOST ARE that do that.

They collect on the dole then work the gray market making unreported income.

Then on no income they file or ten or more thousand in tax returns. A real crime in mass going on in that population.


19 posted on 04/22/2013 3:46:30 PM PDT by A CA Guy ( God Bless America, God Bless and keep safe our fighting men and women.)
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To: A CA Guy

But MOST ARE that do that.

They collect on the dole then work the gray market making unreported income.

Then on no income they file or ten or more thousand in tax returns. A real crime in mass going on in that population.


I agree. I was simply saying thay a lot of people work under the table and not all are illegals.


20 posted on 04/22/2013 3:49:05 PM PDT by laplata (Liberals don't get it. Their minds have been stolen.)
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To: yldstrk
No garnishment from bank accounts for child support. Our child support system is broken

That's a huge reason many people avoid bank accounts. Many of the people cited in this article [minorities in particular -- but not limited to] lead incredibly chaotic lives with strings of boyfriends, ex-wives, children scattered about, arrest warrants, tax problems, etc..

Probably one of the most rational decisions they make is to conduct their affairs, such as they are, all in cash. Liberals can't stand that, though. And they can't conceive that everyone isn't just like them. No, it must be capitalistic oppression that's holding these people back and, therefore, new LAWS are called for.

21 posted on 04/22/2013 3:49:26 PM PDT by BfloGuy (Don't try to explain yourself to liberals; you're not the jackass-whisperer.)
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To: Steely Tom

Seems it used to be that you couldn’t have ‘assets’ to draw welfare.


22 posted on 04/22/2013 3:50:05 PM PDT by griswold3
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To: rightwingintelligentsia

C’mon. These people use cash for a couple of obvious reasons. First, if they do fall behind on a rental payment or other obligation, the creditor has little chance of seizing cash assets in court. Second, in order to qualify for welfare benefits, these folks need to show little or no income and assets.


23 posted on 04/22/2013 3:50:58 PM PDT by grumpygresh (Democrats delenda est.)
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To: laplata

I’m here in CA and all those not on drugs that do that are illegals out my way probably 99.999%.

I would LOVE research on how many false tax returns our visitors are filing?

IMO some areas like the zip 90001 on South Central Los Angeles are costing taxpayers many millions a block in theft, false claims and undeserved benefits.

I never thought we as tax payers were supposed to put up with theft of our tax dollars. What do we get out of this deal outside of dependents?


24 posted on 04/22/2013 3:58:03 PM PDT by A CA Guy ( God Bless America, God Bless and keep safe our fighting men and women.)
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To: A CA Guy
What do we get out of this deal outside of dependents?

RAT voters.

25 posted on 04/22/2013 4:13:04 PM PDT by Roccus
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To: rightwingintelligentsia

Business appears to be booming on “Hardcore Pawn”.


26 posted on 04/22/2013 4:17:42 PM PDT by dainbramaged (Joe McCarthy was right.)
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To: rightwingintelligentsia

When the banks collapse and the bail-ins begin they will get the last laugh.


27 posted on 04/22/2013 4:28:03 PM PDT by E. Pluribus Unum ("Deficit spending is simply a scheme for the confiscation of wealth." --Alan Greenspan)
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To: Jim Robinson
Cash only means they’re also left out of the tax system. Illegals GO HOME!!

Every sane person hides cash income. Doesn't matter whether they're "illegal" or not.

28 posted on 04/22/2013 4:29:29 PM PDT by elkfersupper ( Member of the Original Defiant Class)
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To: dainbramaged

The underground economy has always been pretty big in America, but in the era of Baraq it’s gotten huge.

The US looks more like a S. American banana republic every day.


29 posted on 04/22/2013 4:31:49 PM PDT by nascarnation (Baraq's economic policy: trickle up poverty)
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To: pfflier

“No bank account = no traceability of transactions.”

Which is nice. I’d like to be able to do that these days.


30 posted on 04/22/2013 4:49:14 PM PDT by CapnJack
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To: rightwingintelligentsia
Poverty in America: Millions of families too broke for bank accounts
Sabino Fuentes-Sanchez hid $25,000 all around his house because he didn't trust banks.

Who is this imbecile? Totally clueless that he's a idiot.

Off the books tax free income, moron.
Google it!

31 posted on 04/22/2013 4:57:05 PM PDT by publius911 (Look for the Union label, then buy something else.)
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To: Paladin2

I’m moving to cash transactions, big time.”

Our local grocery store give $.10 off a gallon of gas for every $100 you spend up to $.30/$300. Following a suggestion by one of my neighbors, I took $400 in cash, bought a pre-paid VISA card with it at this same store and so was eligible for $.30/gallon off my gas. I use the same VISA card to pay for other purchases and just keep refilling it by cash at the same grocery store.


32 posted on 04/22/2013 5:06:10 PM PDT by Grams A (The Sun will rise in the East in the morning and God is still on his throne.)
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To: rightwingintelligentsia
"Lasonia Christon receives her Wal-Mart salary on a pre-paid debit card."

Not only do many Walmart employees just use the debit card, many take ALL the money off the card in cash just after midnight on payday. Then there are the MANY workers who take their paychecks to Walmart or other retail stores to cash. no banks

33 posted on 04/22/2013 5:06:14 PM PDT by eccentric (a.k.a. baldwidow)
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To: rightwingintelligentsia
What a bunch of BS. Anybody who isn't (a) wanted by some govt. authority, or (b) an illegal immigrant, or (c) trying to duck some judgment or creditor can easily open up a checking or savings account. And even if you have trashed credit you can get prepaid money cards, etc. from multiple sources, including Walmart and PayPal.

And you can still open accounts with very small amounts of money, like $100.00.

The examples of people dealing in cash are examples of people who want to do so for their own reasons. That's their choice, and no doubt for them paying a $6.00 check cashing fee with no record of the income beats paying no fee and leaving a paper trail.

34 posted on 04/22/2013 5:10:19 PM PDT by freeandfreezing
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To: rightwingintelligentsia
Sabino Fuentes-Sanchez hid $25,000 all around his house because he didn't trust banks.

It's more likely that Sabino Fuentes-Sanchez hid $25,000 all around his house because he has no papers.

35 posted on 04/22/2013 5:12:44 PM PDT by Mr. Jeeves (CTRL-GALT-DELETE)
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To: freeandfreezing
What a bunch of BS.

No, you have to have a photo ID and proof of a physical address.

I went through this nightmare recently because I am a full-time RV'er.

Took me 90 days working full-time to get a driver license, PO Box and bank account.

Thank you George W. Bush and the Patriot Act.

36 posted on 04/22/2013 5:14:41 PM PDT by elkfersupper ( Member of the Original Defiant Class)
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To: CapnJack

The underground economy. It can be good but usually it is used to mask less than savory behavior.


37 posted on 04/22/2013 5:47:12 PM PDT by pfflier
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To: rightwingintelligentsia

May as well get along with those who have no steady incomes. Most of us will join them before long.


38 posted on 04/22/2013 5:58:33 PM PDT by familyop (We Baby Boomers are croaking in an avalanche of rotten politics smelled around the planet.)
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To: Grams A

Is that functionally a debit card then?


39 posted on 04/22/2013 6:40:01 PM PDT by Paladin2
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To: elkfersupper
That situation is of great interest to me at the moment.

MT will not let me register a vehicle that is only driven in MT as I don't have property there though I stay as there for months at a time. What do they do with/for real homeless people?

I found an operation in Chamberlain, SD that provides mail forwarding and somehow will assist in getting a SD driver's license and plates.

If one spends 4 months in three states/yr, how does one get a state residency?

40 posted on 04/22/2013 6:45:11 PM PDT by Paladin2
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To: pfflier
The underground economy. It can be good but usually it is used to mask less than savory behavior.

We pay cash as much as we possibly can. We notice that when we pay by other means, we get spam mail and spam phone calls soliciting business. It's not just spammers tracking us, but government as well and they are the ones using tracking for less than savory behavior. Some stores ask for a phone number, what's up with that; we give out fake numbers. Our cash transactions are not always small, sometimes in the thousands at a time. We are not unsavory characters, we just want to have some privacy.

41 posted on 04/22/2013 6:56:58 PM PDT by roadcat
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To: Paladin2

Is that functionally a debit card then?”

Thus far it seems to work the same as one but it isn’t tied to my bank account like my regular debit card is so that is a plus. Just have to remember to keep track of how much is left. I had enough to buy 4 stamps at the post office before I refilled it last time but learned you can’t buy just 4 from the kiosk.

One of my clients said he got a card for his daughter who attends college on the east coast and he uses Cash Pop to transfer “refills” from his checking account to her CC#. Seems like there are all kinds of stuff like this out there. Don’t have time to check this out so don’t know for sure how it works.


42 posted on 04/22/2013 7:21:06 PM PDT by Grams A (The Sun will rise in the East in the morning and God is still on his throne.)
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To: Grams A

I ask because COSTCO gas purchases require a Debit Card or AmericanExpress - no cash.


43 posted on 04/22/2013 7:24:11 PM PDT by Paladin2
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To: griswold3
Seems it used to be that you couldn’t have ‘assets’ to draw welfare.


44 posted on 04/22/2013 7:32:32 PM PDT by listenhillary (Courts, law enforcement, roads and national defense should be the extent of government)
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To: roadcat

I said it can be good. It just depends on the integrity of the individuals.


45 posted on 04/22/2013 7:54:00 PM PDT by pfflier
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To: elkfersupper
No, you have to have a photo ID and proof of a physical address.

I went through this nightmare recently because I am a full-time RV'er.

That is a very good point which I hadn't thought of. Another consequence, unintended or not, of excessive government intrusion into the marketplace. The supposed benefit of catching some terrorist depositing money is probably swamped by the very real problems faced by ordinary people who are denied access to the banking system.

46 posted on 04/22/2013 7:57:07 PM PDT by freeandfreezing
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To: Paladin2

I haven’t ever bought anything from Costco so I don’t know about their credit card restrictions. So they don’t take any credit cards except for AMEX?

On occasion in the past I have used my debit card as a credit card - only difference that I can tell is that I don’t have to enter my 4 digit code when I use it as a credit card.

I do get cc type gift cards sometimes for my son and grandchildren but don’t ever do AMEX because of the percentage you have to pay when you buy the card. Might want to get a VISA/MC for a small amount and see if it works. If it doesn’t, you can always use it for something else without risking too much money. I always ask to make sure it is refillable though because I have found that some aren’t.


47 posted on 04/22/2013 8:00:32 PM PDT by Grams A (The Sun will rise in the East in the morning and God is still on his throne.)
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To: roadcat
"...we just want to have some privacy. "

Bingo. We need to have a privacy amendment to the Constitution.

48 posted on 04/22/2013 8:27:40 PM PDT by Paladin2
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