News

Katrina sheds light on unbanked

September 14, 2005

ABC News: Hurricane Katrina has brought into focus the financial plight of many African-Americans along the Gulf Coast as well as illustrated the differences in how minorities and whites use and are treated by banks.

Many poor people lost their savings, in cash, which was stashed under mattresses and in teapots. Around the country, many low-income minorities shun banks, have never used an ATM or applied for a home mortgage. Often, they turn to storefront payday lenders, which charge high interest.

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