Comment on Being poor is expensive

chiliedogg@lemmy.world ⁨12⁩ ⁨hours⁩ ago

• coolie4@lemmy.world ⁨11⁩ ⁨hours⁩ ago

  I’ve never understood check cashing places.

  I thought people only went to them because they didn’t want to wait for checks to clear, or they didn’t want a paper trail on a checking account, because it would get automatically garnished for child support.

  Are you saying that someone could actually be so poor that a bank will refuse them from opening a checking account? What risk is there to the bank if it goes empty?

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  • isleepinahammock@lemmy.blahaj.zone ⁨1⁩ ⁨hour⁩ ago

    Banks have a separate system, like the credit rating system, they use just for depositors. Credit scores reflect the risk to lend money to you. But the banks keep other scores and lists of depositors. Too many overdrafts or transactions their AI considers suspicious? You can be blacklisted from opening an account at any bank.

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  • DagwoodIII@piefed.social ⁨9⁩ ⁨hours⁩ ago

    One thing is financial literacy.

    A lot of people come from a cycle of poverty where no one around them can explain why it’s a good idea to have a bank account.

    Also, there are predatory banks that demand minimum amounts to start any account. If you don’t have $200.00 to start an account it’s hard to start an account.

    Back in the day, banks encouraged little kids to start bank accounts with just a few dollars. I had a bank book when I was 12. Those days are long gone. I went to Bank of America with a check from a BOA account and they wanted to charge me. I could wait to get to my own bank, but other folks wouldn’t have that option.

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    • Formfiller@lemmy.world ⁨6⁩ ⁨hours⁩ ago

      We also used to have a 70% wealth tax in those “good ol days” pre Reagan

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      • DagwoodIII@piefed.social ⁨5⁩ ⁨hours⁩ ago

        Reagan was a good family man who believed in small town values and honesty.

        He threw away his wife for a bimbo after moving to Hollywood.

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  • HertzDentalBar@lemmy.blahaj.zone ⁨10⁩ ⁨hours⁩ ago

    Credit Unions for example require a share purchase usually so while it’s usually quite small some people can’t afford to loose even $5.

    Sometimes it’s also debt, guy owes his normal bank a fuckload of money so uses the cash checking to cash his check, he might lose a bit in fees but it’s probably less than what the bank would of taken. I’ve seen alot of contractors in this situation.

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    • HugeNerd@lemmy.ca ⁨10⁩ ⁨hours⁩ ago

      can’t afford to loose even $5.

      Is that what they mean when they say money’s tight?

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  • chiliedogg@lemmy.world ⁨11⁩ ⁨hours⁩ ago

    They don’t want to risk people overdrafting and just changing banks.

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    • Buddahriffic@lemmy.world ⁨10⁩ ⁨hours⁩ ago

      Then don’t give them overdraft? I bet a lot of them don’t even want it and would rather it just reject any payments that would put it in the negative because they charge extra for using overdraft, too.

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      • Dookieman12@piefed.social ⁨9⁩ ⁨hours⁩ ago

        You don’t understand. They WANT to de-bank poor people.

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  • jdr@lemmy.ml ⁨11⁩ ⁨hours⁩ ago

    There’s not a high risk of making much money off then, so it’s considered a waste of time and resources

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