Wednesday, July 31, 2013

Banks Discriminating Against Increasing Number Of Customers

Share this ARTICLE with your colleagues on LinkedIn .


Banks are discriminating against an ever-increasing group of prospective depositors.

This excerpt from a New York Times article sums it up nicely, but without too much detail:

The NEW YORK TIMES  July 31, 2013
DealBook: Over a Million Are Denied Bank Accounts for Past Errors 
Mistakes like a bounced check or a small overdraft have effectively blacklisted many Americans from the financial system, leading to fees for paying bills, cashing checks and wiring money.
Some of the "offenses" which can make it very difficult for you to open a checking or savings account at a commercial bank or a savings and loan association

1) A bounced check during the past several years;

2) An outstanding unpaid fee or penalty on a bank account that was forgotten about or abandoned;

3) An overdraft (whether or not you had uncleared funds adequate to cover the amount, and whether or not the bank paid the check when it was presented);

4) A check (in a significant amount) which you deposited in your account, but which bounced;

5) An ongoing criminal or legal investigation of your finances or of your life;

6) Outstanding judgments or liens (of any sort);

7)  Dealing extensively in cash transactions;

8) Wiring significant sums of money out of the country (USA) in the past, or receiving wires from any number of foreign countries in any amounts; 

9) If you've had significant credit card problems relating to exceeding the limit, arguments about the return of merchandise, even significant discourse about your card being stolen or cases of identity theft and the fraudulent use of your card;

10) If you've never had a bank account before;

11) If you have a particularly bad credit history (significant negative credit bureau reporting);

12) If you are on a "target list" compiled with law enforcement and the government at the federal level -- you may not be guilty of anything, and you probably don't know that you've been blacklisted.

A bank denial can sometimes be remedied by having an immaculate soul open the account, and then having that person go to the bank with you and fill out the very simple paperwork adding you as a second signatory several weeks afterward. This is the easiest and best method of circumventing the system, although it works only most of the time -- not all of the time.

In the interim, more and more Americans are being forced to pay incredibly high rates to use the services of check cashing bureaus, Western Union and other transfer services, third-party wire services, and e-commerce merchant payment services like PayPal. The expense associated with completing a large number of relatively small dollar amount transactions using these methods takes any user well above the usury statute ceilings.

Not only are banks largely unwilling to lend (except in the curious cases of car loans and large bank-to-bank loans), but they are literally squeezing out a great deal of the lower-income population from having any relationship with them at all. 

If you quality, try to find a good credit union, or have an angel friend (someone whom you really trust) open an account for you and bring you in after the account is established.

This trend, and the expenses borne by the excluded population will continue to increase without oversight or regulation. And remember that banks neither need nor want your business -- they would rather receive bailouts from the U.S. government... these require far less work, and far less compassion. 


View DOUGLAS E. CASTLE's profile on LinkedIn

Douglas E Castle
All Blogs & RSS Feeds

Share this page
Contact Douglas Castle
Follow Me on Pinterest


CFI, C.F.I., CrowdFunding Incubator,  crowdfunding, crowd funding, incubators, accelerators, finance projects, listing services, start up, small business, SME, funding, capitalization, financing, leverage, company services, management, marketing, fundraising, technology, mentoring, advice, media, branding, memes, business tips tricks tools and resources, entrepreneur, forum, discussion, applications, technologies, risk assessment, business model, strategic planning, organizational development, connections, networking, early-stage, first-round, angel  funding, venture capital, credit lines, assistance, business growth, biz builders, social media power, delegation, automation, monitoring, metrics, brainstorming, meetups, joint ventures, partnerships -,, marketing, messaging, news releases, free, gain market share, increase backlinks, SEO, influence, disruption theory, directory, RSS feeds, Douglas E. Castle, blogroll, blogs, crowdfunding blogs...

crowdfunding websites, crowdfunding incubators, crowdfunding platforms, crowdfunding startups, crowdfunding news, crowd funding news, crowdfunding updates, crowdfunding rss feeds, crowdfunding incubator, CrowdFunding Incubator, crowdfunding accelerator, crowdfunding projects, crowdfunding ventures, crowdfunding sites, crowdfunding associations, crowdfunding organizations, crowd funding, project finance, micro loans, venture capital, micro-ventures, angel funding, crowd funding, project fundraising, crowd funding sites, crowd funding resources, crowdfunding tips tricks tools techniques, CFI, CrowdFunding Incubator LLC, crowdfunding capital, capital sources, CFI Featured Projects, CFI CrowdFunding Incubator, Crowd Funding RSS Feeds, CrowdFunding Incubator C.F.I., SME, SBA, MBE, WBE, DBE small business grants, loans, credit, growth capital, non-bank, fund a project, kickstarter, Indiegogo, crowd funding start ups, new crowd funding sites, crowd funding laws, JOBS Act, crowd funding contests, entrepreneurs, innovators, inventors, applications, funding technology, growth capital, seedling businesses, kiva, socially responsible projects, crowdsourcing, crowd sourcing, funding phases, business plans, presenting your business idea, crowd forums, government business assistance programs, business mentoring, free business resources and advice,,,, Douglas E. Castle blogs...

View DOUGLAS E. CASTLE's profile on LinkedIn

Douglas E. Castle - Blogger Profile
CFI - Notes From The CEO
Instant Musical Counterpoint - Relax!


No comments:

Bookmark and Share