“Underbanked” story misleads
December 10, 2009 | alternatives, federal legislation, industry | Comments (0)CFSA’s Board Chair D. Lynn DeVault in the Hattiessburg American:
The FDIC mistakenly characterizes as “underbanked” any household that has a bank account but used an alternative financial service. Findings show that customers use payday loans for multiple reasons, including convenience and because it “feels more comfortable than a bank.”
Just because an adult with a bank account chooses to use an alternative financial service does not necessarily mean they are being underserved by their bank or are “underbanked.”
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