Feature Story

March 25, 2009

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

Los Angeles Times:

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.