LOS ANGELES, Calif. – Today, the Los Angeles County Board of Supervisors approved a motion authored by Supervisor Hilda L. Solis and coauthored by Supervisor Lindsey P. Horvath to increase banking access for people experiencing homelessness.
People experiencing homelessness face unique challenges to banking access. Frequent movement between shelters, social isolation, stigmatization of being homeless, and limited access to technology impede access to bank accounts for this population. Additionally, federal law requires individuals to provide a physical address when applying for a bank account. While individuals without a physical address are permitted to provide an Army Post Office address, the address of a friend or family member, or the address of a shelter or homeless services agency that provides them mailing services, many people experiencing homelessness are not aware of or do not have access to these resources.
This lack of banking access can exacerbate economic insecurity. Many people experiencing homelessness receive checks for federal and state benefits. Without a bank account, they often utilize check cashing centers to access this income. However, check cashing businesses often charge large fees that can be onerous for unhoused individuals incomes. Being unbanked can also make it more difficult to secure employment, easily pay bills, and digitally track expenses.
“On top of the many challenges facing people experiencing homelessness, access to banking access is one we may not always think about. Without banking access, unhoused individuals risk their personal safety by carrying cash and often sacrifice income to cash their benefits checks. By taking the steps to increase banking access for people experiencing homelessness, we will help improve their safety and open the door to financial stability,” said Supervisor Solis.
“Bank accounts and banking services are a critical gateway to stability that most people experiencing homelessness lack. This is exactly the kind of roadblock that prevents people from accessing housing or a job opportunity,” said Supervisor Horvath. “I hope the outreach and education initiated by this motion gets our unhoused community connected to banking services, and better protects them against theft and exorbitant check-cashing fees. We must dismantle all barriers as we help the thousands of people living without shelter across our communities.”
The motion, which was approved today in a 5-0 vote, directs County departments to report back in 90 days on increasing banking access for people experiencing homelessness through efforts around collaboration with banks and informational outreach campaigns on existing options and processes. Additionally, it directs County Counsel, in collaboration with the County’s Chief Executive Office – Legislative Affairs and Intergovernmental Relations division, to report back on federal regulations that require a physical address to open a bank account and options for federal regulatory and/or statutory reforms, if any, to make it easier for people experiencing homelessness to obtain bank accounts.
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