California governor wants more Californians to open bank accounts

[Judi Lynn]

Source: Xinhua

California governor wants more Californians to open bank accounts


www.chinaview.cn 2008-01-25 07:20:38

LOS ANGELES, Jan. 24 (Xinhua) -- California Governor Arnold Schwarzenegger announced on Thursday that California will be the first state in the United States to launch an effort to help working Californians without bank accounts open starter accounts.

The announcement was made in an opinion piece co-authored with former President Bill Clinton and published in Thursday's Wall Street Journal.

The new initiative, called "Bank on California," will help more low-and-middle-income Californians establish savings, build a credit history, gain access to lower-cost sources of credit and invest for the future.

"Through 'Bank on California' we will help working families save money by accessing basic financial services others may take for granted -- putting them in the financial mainstream," said Schwarzenegger. "This simple, innovative idea won't cost taxpayers a dime, helps working families get ahead and grows our economy at the same time."




Read more: http://news.xinhuanet.com/english/2008-01/25/content_7491199.htm

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http://latimes.image2.trb.com.nyud.net:8090/lanews/media/photo/2005-06/18026228.jpg

[Kutjara]

1. "All the better to track you with, my dear."

We don't like people living off the grid, no we don't. How can we be sure we have them by the short and curlies when we don't know where they're keeping their money?

[shraby]

2. Maybe more people would have savings accounts if

they didn't charge a fee for anything under a hundred dollars (maybe more now) and actually paid interest on the account that amounted to something.

[Kutjara]

5. Not to mention screwing around with deposits and withdrawls...

...so they can take advantage of the float, while bouncing checks they're too incompetent to clear in a reasonable time. For many low wage earners, bank accounts are a minefield. One missed payment or mistimed check and it's a world of financial pain.

[BobTheSubgenius]

10. DING DING DING!

We have a winner! And the first one out of the gate, to boot.

Nice catch.

[lynnertic]

19. not so much that. Using a bank costs money and now that Walmart

lets one load their paycheck straight into a debit card, even the check-cashing places are gonna lose money.

I went to cash a check at BofA once and was told that if I didn't have an account then they wouldn't honor the check and give me money from their bank without a $6 fee.

That's criminal!

[noel adamson]

3. They need a new scam since the sub-prime went the way of the S&Ls.

[KatyaR]

4. This article should be entitled,

"CA Gov reveals plans to prop up banks and financial institutions."

You know damn well if those people will be paying bank fees out the nose. Just another big payday for California bankers.

[fed-up]

6. we want more people to spend money they don't have so the economy looks rosy-FY Arny nt

[rumpel]

7. if he'd do away with those fees

on everything...maybe

[Roland99]

8. I thought we were supposed to *spend* money to save the economy?

A noble thought to save but I cannot help but to think this is a secret way to raise more capital for banks.

[Zynx]

12. Are you saying that higher savings rates are somehow bad?

There's nothing wrong with banks having more capital.

[Roland99]

13. It seems like an odd thing for a Governor to push, esp. in this time of bank crisis

Is Arnold really worried about Californians developing savings and reining in spending?

[Art_from_Ark]

14. I would say it's more like he's looking for a painless infusion of cash

into the California banking system.

[Roland99]

18. I just find it interesting to hear Arnold go against WH rhetoric

On one hand, the WH wants to give away billions for us to spend and revive the economy whiile Arnold is asking Californians to save.

[lynnertic]

20. now that home sales are down and foreclosures up, mortages arent making banks

the money they used to!

[flashl]

17. He is echoing ...

Brussels urges Washington to boost savings and reduce its current account and fiscal deficits to help shore up the U.S. economy

EU Blames U.S. Spending for Turbulence


Soros suggests U.S. “financial system needs a global sheriff".

Seeing Signs of ‘Systemic Failure’

[Demobrat]

9. If people are using check cashing places

cause they don't have bank accounts this can only help them. Those places charge up the wazoo, not to mention that banks are generally pretty safe places to keep what little cash one has. Important if you're in a high crime area.

[happyslug]

11. What about a person who has a Money Judgment against him or her?

From my reading of California law (I do NOT practice in California and thus this is only after a quick read of what I found on the net) it appears that money deposited into a back account can be attached by a Creditor, even if the money had been exempt from execution as wages (i.e. under the Federal Exemption of 30 times the federal minimum wage or after 25% of the wages had been attached).

In fact according to the web cite for Small Claims court for California, you can even attach a spouse's income (Something that is NOT possible in my home state of Pennsylvania which clearly holds a spouse's assets and marital assets can NOT be sold for the debt of the other spouse, or in the case of Marital assets the debts of one spouse, this is in additions to Pennsylvania's ban on attachment of wages for debts except for Child support, students loans and a few other minor exceptions).

Small claims Court in California
http://www.courtinfo.ca.gov/selfhelp/smallclaims/collectintro.htm

List of California Exemptions:
http://www.courtinfo.ca.gov/forms/documents/exemptions.pdf

Code of Civil Procedure 704, personal property exemptions:
http://caselaw.lp.findlaw.com/cacodes/ccp/704.010-704.210.html

General provisions:
http://caselaw.lp.findlaw.com/cacodes/ccp/703.010-703.150.html

Homestead provisions:
http://caselaw.lp.findlaw.com/cacodes/ccp/704.710-704.850.html

I do NOT see any exemptions of any bank account, except if used to deposit Social Security or welfare payments, under the above laws. California gives a lot more exemptions than Pennsylvania when it comes to property (Pennsylvania only exempts $300, personal clothing and a Bible) but from what I have read California treats banks accounts the same as Pennsylvania, as something that can be grabbed by Creditors. Given that a lot of people who do NOT have bank accounts because any money deposited can be taken by one of their judgment creditors (Often an old landlord) how does the proposal handle this problem?

Please note I can going by my practice in Pennsylvania, which with its $300 personal property exemptions. the practice of grabbing bank accounts is common. California practice may be different I will have to defer to a lawyer who practice in that state. For that reason I am just pointing out one reason (and often the chief reason) my clients do NOT have bank accounts, their wages, once deposited into a bank account, can be grabbed by a Judgment Creditor even while they have outstanding checks on that account. Bank deposits in Pennsylvania are NOT exempt from attachment. From what I have read neither are bank accounts in California, which may be the chief reason low income people do NOT have back accounts.

[doodadem]

23. I believe you are correct

That is what our attorney here in Calif. is telling us. In the lawsuit from hell, which we've had going for the past 3 years, we could lose everything. While our bitchy old neighbor gets to keep two large railroad pensions, social security, etc etc. because she's a "senior citizen". As the local aging counsel told us, just because someone is over the age of 65, doesn't mean they get to abuse everyone else. But it looks like she's getting away with it.

Haven't you always heard that your bank will let you defer a mortgage payment in an emergency? That's not true either apparently. I called Wells Fargo last week to see if we could do that. They said absolutely not. Got news for them: we're doing it anyway. Don't have a choice.

Banks have not interest in working with their customers in tough times. It's all about grab the money and run, and when they get into a bind, the taxpayers are supposed to bail them out.

Two words:

Fuck them.

[xxqqqzme]

15. This sounds like a good idea to him

because he probably makes too much money to pay taxes.

[truthisfreedom]

16. ATMs. That's all I've got to say.

Get you coming and going.

[flashl]

21. check cashing services and payday loans 'business'

reportedly earned over $8 billion in fees. Banks recently expressed interest in creating 'Low-income bank accounts' to compete with that industry.

[mulsh]

22. try to open a bank or savings account with out a credit card or

a minimum deposit sometime. Most banks and savings & loans in CA require 2 forms of id, credit cards are one of the favored forms. This little announcement reminds me of der gropenfuerer's health care initiative. It will sound great to republicans and other fools but ultimately never help the alleged target group. unless you focus on the actual target-corporations.