Need to cash a check? One State Representative, Zach Hudson (D-Troutdale) wants to make sure you don't have to pay a fee, even if you don't have an account or any business relationship with the bank or credit union. HB 2356 is seen by many as one of many that is sympathetic to persons with legal or criminal history in Oregon.

The Federal Deposit Insurance Corporation -- better know by its acronym FDIC -- says that 4.2% of Oregonians were unbanked in 2017.

Why are people unbanked? Analysts note several reasons, among which are:

1. Your past financial mistakes put you on a no-account list
2. You don’t trust banks
3. You’re worried about minimum balance requirements
4. You’re aiming to avoid fees
5. You’re trying to avoid debt collectors
6. You’re young

This list, which doesn't include an inability to have a relationship with a bank due to being an illegal alien, seems to make a pretty clear case that it's not really the bank's fault that you're not in a position or don't desire to have a relationship with a bank. Incredibly, Representative Hudson doesn't have a problem with making the bank provide the service for free. Of course, nothing is free and the service will be paid for by existing customers.

Another side effect of the bill is that since state law can only govern state chartered banks and credit unions -- not federally chartered ones -- the law only applies to smaller, local banks and credit unions. They'll have to face the additional burden of servicing the unbanked, while their larger, federally chartered competition can still charge fees.


--Staff Reports

Post Date: 2021-02-20 07:52:32

Last Update: 2021-02-21 19:10:00