by Adrienne Ashby

Until recently, most banks offered few, if any, services for low and moderate income people. Checking accounts had restrictions like minimum deposit and balance requirements. Some people may have avoided opening accounts or cashing checks because banks had tough identification requirements. High interest rates and strict credit requirements for mortgage or other loans kept lower income people from becoming homeowners. A new federal banking law may make some of these banking services more affordable.

The Banking Law
The Community Reinvestment Act (CRA) requires banks to learn about the credit and service needs of the entire community they serve. It also requires banks to develop products and services that meet those needs. Banks have a legal responsibility to the people in the communities they serve. This includes people with low or moderate incomes.

CRA Services, Programs and Products
Because of the Community Reinvestment Act, some banks now offer services,products and programs that benefit low and moderate income people. Here are some of the products, programs and services designed with lower income people in mind:

• Low-cost money orders
• Free financial counseling
• Community banking fairs
• Free or low-cost checking accounts
• Direct deposit of Social Security, TANF or payroll checks
• Special programs for those 55 years or older
• Consumer loans with relaxed credit requirements and no fees
• Home improvement and mortgage loans with relaxed credit requirements and low interest rates
• Flexible identification requirements for cashing checks and other transactions
• Extended weekday business hours
• Saturday banking hours

These services, programs and products are not available at all banks. Their features may be different at each bank. It's best to contact the bank directly for details about their CRA products, services and programs.

Public Comment
CRA requires banks to keep track of letters they receive from customers and the general community. These letters are placed in the bank's public comments file. The government uses this information to see how well banks meet their CRA responsibilities.

If you have a complaint about a bank you may send them a letter and ask that it be placed in their public comments file. The public comments file is also open to the public. Letters can be sent to a bank's public comments file at anytime.

Problems with Banks or Banking Services
If you have a problem or complaint about a bank that is chartered in Georgia, you should contact:

Federal Deposit Insurance Corporation
Consumer Response Center
2345 Grand Boulevard
Suite 100
Kansas City, Missouri 64108
Toll Free Telephone: 1-877-275-3342

For problems involving federally chartered banks and financial institutions (banks with the word "National" or "N.A." in their title), contact:

Office of the Comptroller of the Currency
Customer Assistance Group
Suite 3710
Houston, Texas 77010
Toll Free Telephone: 1-800-613-6743

The federal government says banks must not discriminate against a person or community because it is poor. Banks have a duty to find out about, and offer services and products that meet the needs of the communities they serve. As a result, many banks now offer affordable products and services. These include low-cost money orders, free or low-cost checking accounts, and educational events. If you want details about a bank's CRA products, programs and services, contact the bank of your choice.

IMPORTANT NOTICE

The information contained in this web site applies only to GEORGIA, USA. It is intended only as INFORMATION and does not constitute legal ADVICE, nor does reading, downloading or otherwise using this site create an attorney-client relationship.  Anyone seeking specific legal advice should contact an attorney licensed in the appropriate state, and should never rely upon the information provided herein, or any other web site, for that matter.