Re:Hundreds join line at NYC ATM to access unemployment bene...
by luckylion on Monday June 08, 2020 @01:21PM
(#23458532)
Those and other reasons make absolute sense, but I would imagine somebody to offer basic banking to the unbanked with a reasonable fee structure etc and just take the market. Germany's banking system is terribly customer hostile, but we've got that covered. The US is the motherland of disrupting old industries, why is it that it's not sorted out yet?
I get why some old self-important bank does not want to deal with the poor and makes faces if you suggest it, but somebody has to yell pecunia non olet and jump int.
Re:Hundreds join line at NYC ATM to access unemployment bene...
by kwhitefoot on Thursday June 11, 2020 @04:53AM
(#23486600)
> When you deposit a check into a bank account,
Why do cheques still exist? We haven't had them here in Norway for twenty years.
Re:Hundreds join line at NYC ATM to access unemployment bene...
by mumblemumble on Monday June 08, 2020 @01:00PM
(#23458330)
I would add that that, when you don't have a lot of money to work with, operating on a cash basis makes controlling your budget a lot easier.
1. Speedy access to money When you deposit a check into a bank account, you have to wait a few days before the cash is accessible. Many people live paycheck to paycheck and they cannot wait. Hence check-cashing services.
2. Overdraft fees These are incredibly regressive - punishing those who have low funds. Some banks were caught with predatory behavior - rearranging transactions in a day so the largest hit first and they could trigger multiple overdraft fees (since it is per-transaction) until laws were passed to prevent this behavior.
3. Other hidden fees (low-balance, etc) that aren’t very transparent and really painful when every dollar counts.
Not to mention cultural issues etc. Long-story short, there is a reason people use check-cashing services even though at face value they seem a worse deal than traditional banks.
(Source: was VP of ENG at Credit Karma)