U.S. Rep. David Scott (D-GA) last week introduced H.R. 4067, the Financial Inclusion in Banking Act, meant to protect the nation’s financially underserved and protect them from “alternative financial services” such as predatory lenders, pawn shops, and title loans.
The bill, cosponsored by Rep. Sean Duffy (R-WI), would empower the Office of Community Affairs, along with other government agencies, to conduct research on identifying how to help under-banked Americans, develop strategies to improve financial education, and submit a report to Congress within two years with recommendations on how those goals can be met.
According to a 2017 study from the FDIC, African-American communities are the most under-banked in the nation. The report states that only 45% of black households are “fully banked,” meaning they have a checking account and have not relied on alternative financial services in the past year. That issue, says Scott, is far too common in his South Atlanta district.
“Far too frequently, consumers in the 13th District of Georgia and across America are forced to turn to alternative financial services products and predatory lenders to cover basic expenses,” said Congressman Scott. “We must ensure that our financial system prioritizes the most underserved consumers in our nation, and that’s why this research is so important. Understanding the systemic barriers standing in the way of greater financial inclusion is the first step toward improving access and affordability for underserved consumers.”
The bill now sits in the House Committee on Financial Services, where it will be reviewed and amended before (hopefully) being sent to the floor for a vote.
