LOS ANGELES : Tuttle Urges ‘Lifeline’ Bank Accounts for Poor

Requiring banks to offer low-cost accounts would save low-income residents an average of $350 a year, according to a study by City Controller Rick Tuttle. He released the study to rally support for legislation sponsored by U.S. Rep. Esteban Torres (D-Pico Rivera) that would require banks to offer “lifeline” rates to low-income residents.

“A working person earning as little as $700 a month could save over $350 a year if he or she established a basic banking account, compared to using costly check cashing services which have replaced bank branches in many poorer neighborhoods,” Tuttle said.

Many banks offer accounts that cost only a few dollars more than the Torres bill requires. But legislation is needed, Tuttle said, because banks can change their fees at any time.