Report: 46% of African American Households Don't Bank


Columbia (WLTX)- Josherbert Thompson tries not to make a habit of using check cashing businesses, but sometimes she has no choice.

"If you've got a bill that's due and you owe the bank money, your not going to go to the bank but a check cashing place," says Thompson.

And she's hardly alone. In the U.S., 22 million households have no bank account at all.

The problem is even worse for African-Americans. "Most of the time that's all you see coming into the check cashing places are African-Americans," says Thompson.

According to data gathered by the South Carolina Council on Economic Education, 46 percent of African-American households don't have checking or savings accounts. "It's easier, a lot of banks want to charge you fees," says Thompson.

"The check cashing places don't charge you as much." But Larry Wilson, Chairman of the SCCEE says don't be fooled by the fees. "It can be a significant portion of the take home pay of workers," says Wilson.

Annually as much as 20 percent. Clente Flemming, President of South Carolina Community Bank doesn't believe the blame should be placed on the check cashing industry. "Eliminating the payday lenders, check cashing is not going to solve the problem of the credit crisis in our community," says Flemming.

He says education is the key. The growing credit problem has prompted local banking officials to take a closer look at financial literacy in South Carolina. "We have a growing major portion of our population that doesn't understand economic systems," says Wilson

Officials are hoping to increase awareness among the state's adult population. Meanwhile Josherbert Thompson is doing her part to educate her children on finances.

Meanwhile officials are planning to conduct a study in Richland County. They will utilize experts at USC's Moore School of Business to assist in the project.Based on their findings, they may expand their research statewide.


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I don't beleive this report.

I don't know if I believe that. That seems a bit high. You have to have a bank account to rent or even buy a place to live in most cases just as an example..

Not sure the number.....but Black Enterprise magazine releases some pretty scary statistics about our people and money each year.

If more people had bank accounts, there wouldn't be so many check cashing places in the hood. They are there for a reason.


Lot of states have low or no cost bank accounts with no minimums......that more people should take advantage of. check cashing places are like convenience stores......a straight rip off.