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More Americans opting out of banking system

Posted By admin On September 13, 2012 @ 8:16 am In Money Watch | Comments Disabled

Danielle Douglas
Washington Post [1]
Thursday, September 13, 2012

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.

That means that roughly 17 million adults are without a checking or savings account. Another 51 million adults have a bank account, but use pawnshops, payday lenders or rent-to-own services, the FDIC said. This underbanked population has grown from 18.2 percent to 20.1 percent of households nationwide.

Full story here. [1]


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URLs in this post:

[1] Washington Post: http://www.washingtonpost.com/business/economy/more-americans-opting-out-of-banking-system/2012/09/12/6380b986-fcf1-11e1-a31e-804fccb658f9_story.html

[2] Shadow Banking System Larger than at the Start of the Financial Crisis: http://www.prisonplanet.com/shadow-banking-system-larger-than-at-the-start-of-the-financial-crisis.html

[3] Chart of the Week: Nearly Half of All Americans Don’t Pay Income Taxes: http://www.prisonplanet.com/chart-of-the-week-nearly-half-of-all-americans-don%e2%80%99t-pay-income-taxes.html

[4] Report: Nearly One In Five Americans Have No Money to Put Food on the Table: http://www.prisonplanet.com/report-nearly-one-in-five-americans-have-no-money-to-put-food-on-the-table.html

[5] Banking System Will Need Another $500 Billion: Gross: http://www.prisonplanet.com/banking-system-will-need-another-500-billion-gross.html

[6] CNN Poll: Majority of adult Americans don’t want H1N1 flu shot: http://www.prisonplanet.com/cnn-poll-majority-of-adult-americans-dont-want-h1n1-flu-shot.html

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