United for a Fair Economy has released an annual report, entitled “Underbanked and Overcharged”, that examines the racial aspects of the American unbanked and underbanked crisis. 56.7 million adults are currently unbanked or underbanked, disproportionately Blacks and Latinos, and they collectively spend $103 billion per year on fees and services to predatory lenders like check cashers, payday lenders, auto title lenders, and pawn shops, money that could be spent and recycled in their communities instead. It’s expensive to be poor, and these fringe financial lenders prey upon low-income communities where people of color have limited access to affordable credit and traditional banking services. The report proposes a number of solutions, including postal banking, circle lending, and the BankOn program, as well as a number of other legislative and policy approaches to the problem.
It’s a disgrace that the conventional banking system cannot, or will not, give a leg up to this segment of the American population. Preoccupied with their own self-enrichment and “risk” they cannot see the “risk” to society of refusing to service over one sixth of the population. They ought to be told that their banking licenses (or can any joker start up a bank without let or hindrance?) will be revoked unless their services are open to everyone. Their profits are so startlingly large that they could bear the risk of default. After all, they went after sub-prime mortgages with enough energy, hoping to make a fortune. Those mortgages were taken on by the very people we are talking about.
What has this to do with Epicureanism? Epicurus wanted a good life for everyone, and for all too many people life is far from good. Epicurus took slaves and women into his garden, and opposed discrimination. If it is necessary to fine these extortioners by law as a discouragement, so be it. It is not part of “liberty” to abuse other vulnerable people with impunity.