In the News
NYTimes: Why Banks Are Suddenly Closing Down Customer Accounts
The reasons vary, but the scene that plays out is almost always the same.
Bank customers get a letter in the mail saying their institution is closing all of their checking and savings accounts. Their debit and credit cards are shuttered, too. The explanation, if there is one, usually lacks any useful detail.
Or maybe the customers don’t see the letter, or never get one at all. Instead, they discover that their accounts no longer work while they’re at the grocery store, rental car counter or A.T.M.
Governor’s Budget Blueprint Affirms California’s Commitment to Closing Financial Services and Racial Wealth Gap
Members of the community coalition supporting the CalAccount program applauded Governor Newsom’s focus on ensuring all Californians have equitable access to financial services in the May Revision Budget proposal presented on May 13th for fiscal year 2022-23.
The May Revision budget allocates $4 million to complete the market analysis, the first step in the creation of the CalAccount program as required by the California Public Banking Option Act, AB 1177 (Santiago), signed into law in 2021.
KPBS: California is studying public banking, could it come to San Diego?
California has about 1 million households that don’t have bank accounts, the majority of which are Black and Latino, according to data from the federal government.
But they could soon have access to state backed, no fee checking accounts after Gov. Gavin Newsom signed AB 1177 last week. The law will set up a commission to study the feasibility of creating so-called “CalAccounts.”
Assembly Votes to Guarantee All Californians Access to Free Basic Banking Service
California State Assembly Approves AB 1177 (BankCal), the California Public Banking Option Act
Today the California State Assembly approved landmark legislation that would guarantee all Californians access to basic banking services without fees or penalties. The California Public Banking Option Act, AB 1177 (BankCal), addresses the inequities in financial services acutely felt by communities that have been hardest hit by pandemic and recession: discrimination, predatory lending, and vicious spirals of debt.
BankingDive: California bill would create free banking services for state's residents
California lawmakers are backing a bill to create BankCal, a government program that would offer a "zero-fee, zero-penalty" consumer banking option to the state’s residents. The measure is aimed at "protecting consumers who lack access to traditional banking services from predatory, discriminatory, and costly alternatives."
CalMatters Op-Ed: Californians need state public banking options; here’s why
Banking is prohibitively costly for low-to-moderate income people. It’s one of the main culprits in the state’s widening financial wealth gap.
So, when Wall Street banks released quarterly reports last week, we were stunned – though not surprised – to see a report from The American Prospect that showed 12 of the 15 largest American banks raked in billions in overdraft fees largely from the pockets of vulnerable people already hit hard by the COVID-19 pandemic.
Sacramento Bee: No-fee debit card? California Democrats pitch a state-backed banking program
Nearly 20 Democratic legislators on Tuesday introduced a bill to establish a statewide public banking program, which would partner with private sector financial institutions to provide low-income workers with access to no-fee money transactions and debit cards. Labor advocates said the program could save hundreds of dollars annually for households who do not have bank accounts or rely on alternative services such as money orders and payday loans.
Yuba Net: California Lawmakers Announce First-in-the-Nation Universal Banking Services Access Program
Today a coalition of lawmakers and financial services advocates joined together to announce landmark legislation that would offer a zero-cost, zero-penalty bank account to all Californians. The California Public Banking Option Act (AB 1177), also known as BankCal, creates a financial services platform with existing financial institutions to close the widening racial wealth gap fueled by the exclusion of low-wage communities of color from basic banking services.
ABC 10 - Sacramento: California legislators proposes public banking option to help 'un-banked' residents
Assemblymember Miguel Santiago, D-Los Angeles, has proposed AB 1177, also known as the BankCal Program, which would give people the option to have a no-fees, no-penalty bank supported by the state.
Los Angeles Times: Free banking in California? New bill tackles access and racial equity
Escalating overdraft charges. Minimum balances. High ATM, check-cashing and debit card fees.
Banking can be expensive, especially for low-wage workers.
A score of California lawmakers has signed on to a new bill designed to offer Golden State households free financial services, taking on the state’s powerful banks at a time when easier access to banking services could help families cope with the economic fallout of the COVID-19 pandemic.
FOX – Los Angeles: Lawmakers announce plan to offer zero-cost, zero-penalty bank account to all Californians
A coalition of lawmakers and financial services advocates joined together to announce landmark legislation that would offer zero-cost, zero-penalty bank accounts to all Californians, it was announced in a statement Tuesday. The California Public Banking Option Act (AB 1177), also known as BankCal, creates public banking legislation with existing financial institutions to close the widening racial wealth gap fueled by the exclusion of low-wage communities of color from basic banking services.
La Opinión Op-ed: Propuesta de ley AB 1177 busca cerrar la brecha de la desigualdad
Covid-19 puso de relieve una realidad preocupante: los californianos latinos y afroamericanos trabajan desproporcionadamente como trabajadores esenciales de primera línea en empleos que pagan muy poco y conllevan demasiado riesgo.
Fontana Herald News Op-Ed: Legislative proposal would help provide adequate banking services
Despite the existence of a broad array of banks and credit unions, we have a serious problem in California -- one in four households in the Golden State are either unbanked or underbanked.
This means approximately eight million Californians either don’t have a bank account or they may have an account but are unable to maintain sufficient funds in the account to avoid a broad range of fees for virtually any service they need, and may not qualify for even a debit card that does not carry fees for its use.