Two things LA is doing for the poor and homeless ...

[ColbertWatcher]

Two stories in today's LA Times:

#1 New program encourages low-income L.A. residents to open bank accounts

Nearly 300,000 Los Angeles households do not have a bank account, more than in any other U.S. city, Mayor Antonio Villaraigosa acknowledged at a news briefing Tuesday. Without these tools, low-income families can't put money away for their children's education or the down payment on a home, establish a credit record or pay their bills without giving up a large portion of their salaries to storefront check-cashing outlets, payday loan operations and pawnshops.

It is a problem common to many U.S. cities, especially ones with large numbers of illegal immigrants who do not have the paperwork to open an account and are fearful of mainstream banks. But even individuals who are here legally sometimes find that they can't open an account because they don't have a Social Security number.

A new initiative announced at Tuesday's briefing aims to help 10,000 low-income Angelenos enter the financial mainstream before the end of the year by reducing the cost and simplifying the process of banking.

#2 L.A. County seeks to classify violence against the homeless as hate crimes

Los Angeles County supervisors on Tuesday unanimously recommended that sheriff's deputies, prosecutors and the county Human Relations Commission start tracking and reporting attacks on the homeless as hate crimes. The vote came as the economy worsens and the number of homeless in the county increases -- with some shelters seeing four times as many people seeking help this winter.

Supervisor Zev Yaroslavsky, who sponsored the proposal with Supervisor Don Knabe, said he was concerned about "an emerging pattern of homeless individuals being an easy target of violence in our community."

Advocates for the homeless called the collection of such data a first step in changing policy and laws.

(...)

So far only one city and two states have passed such legislation: Seattle, Maine and Alaska, according to the Washington, D.C.-based nonprofit National Coalition for the Homeless.

Too bad it took a recession and increased number of people falling into poverty for it to happen.

But, it's still good news.

[EFerrari]

1. Bank accounts are just a trap for the poor right now.

They charge up to $35 for overdrafts. That's not going to be much help.

[Donnachaidh]

3. that too. And they will really nail these folks with charges.

This really doesn't help them, unless the banks are willing to NOT hit them with all their usual bullshit fees.

[ColbertWatcher]

5. I don't know.

Just cause people are poor doesn't necessarily mean they can't manage their money.

I think the purpose is to give people an alternative to predatory payday loan associations.

[EFerrari]

8. Oh, of course. But banks pretty much cook their books now

rearranging transactions in order to make charges. It's a little better than those payday bastards, that's true.

[ColbertWatcher]

9. I'm hoping these forgotten neighborhoods get a local bank. n/t

[EFerrari]

10. One of the consequences of this meltdown is that we're all going to get

very local again. It's a shame it took this horror to get there but that will be the upside.

[Naturyl]

11. Boy, are you right.

I make less then $700 a month. If I had the HUNDREDS (high hundreds, not low) I've paid on overdraft charges back, I might be able to buy a washing machine and dryer.

[EFerrari]

12. The banks went from just declining your debit card to covering the ten bucks

and charging you triple for it -- while we were all still used to just sliding that card. Me, too.

I've gone to cash for just about everything except my core bills. It's sort of a drag because I can't just donate to DU, for example, on impulse any more. I have to plan to put that money in the bank to be able to make the donation. But BoA really doesn't need my money more than I do.

[Naturyl]

13. Yep. So many $28 packs of cigarettes and the like....

$3.00 for the cigarettes and $25 for the overdraft charge.

[Donnachaidh]

2. uhh -- some of those banks have been bailed out, and are still reportedly questionable

Soooo, convincing people who have little money to begin with to set up accounts with questionable banks is a good thing?

[ColbertWatcher]

6. Not all banks suck completely.

And they're better than those payday loan places.

[Donnachaidh]

15. the payday loan places aren't the only place to cash checks

But I think you know that already.

BofA and Citigroup? You don't see the irony in this story? Poor people don't generally have the time to *allow* a bank to hold onto a check for 7 days, in order to cash it. These banks generally expect you to keep money in the bank, for them to USE. And the potential for overdraft fees due to questionable *rules* like the 7 day hold will hit the poor FAR MORE than any checkcashing place fees. Oh yeah, and that doesn't even include the monthly fees for providing them the *service* of a checking account, etc.

And as to the payday loan places -- those are normally used to get small loans. I don't know anyone that uses them to cash checks. But one question for you -- do you THINK these banks are going to actually LOAN any money at ALL to these poor people? I'd be more likely to grow a third breast, before B of A or Citigroup would loan these people ANYTHING, or loan money to the poor for anything.

This is just a ploy to suck in some more money for the BANKS. They are NOT doing anyone any favors -- they are looking for an income stream for the bank.

[ColbertWatcher]

16. True, but in poor neighborhoods sometimes they are.

I think the point of the story is to get banks to move into these neighborhoods.

And, I think you know already that BofA and Citigroup aren't the only banks around.

[grasswire]

4. I agree. This is for suckers.

WalMart will cash many payroll checks, as will Safeway and Krogers. With little or no fee!

But, even worse, the whole premise of this article is bogus. Low income people must use banks so they can put away money for college or a down payment on a home??!! That's laughable. LAUGHABLE.

And for those who are here without papers for ID, this fee for check cashing is simply a cost of doing business.

[ColbertWatcher]

7. Payday loan places and check cashing places suck.

Plus, getting banks into these ignored neighborhoods would be a good thing.

I just hope they get a good bank and not one of the fucked-up ones.

[Naturyl]

14. Agreed. As if the clientele of check-cashing places...

Is ever going to be thinking about "money for college" or home ownership.

These are POOR people. That means they don't have any money. They do not need banks to help them achieve middle-class goals. They need to double or triple their income.

[ColbertWatcher]

17. I fear that college loans will be the next "industry" that will get the ...

... Friedman scam treatment.