Comment by liontwist
1 year ago
Maybe that was a true when a bank was a private business and you could reasonably live without it. Today they are effectively a branch of the government and your life would be seriously impaired.
For example, where does your employer setup direct deposit? How do you apply for a mortgage and demonstrate assets?
If society relies on technology then you need it to participate. Yes you can still breathe without access to transportation, but you can’t work in the economy. In 1940 car or bus access was a luxury because normal people got along fine without one. That’s why it’s misleading to say increasing car access is an better standard of living. It’s actually an increase in the cost to participate in life.
So yes banking must be a right. Or alternatively we could strengthen cash rights (reduce technology) with legal protections to qualify for loans, etc. But that won’t happen.
In the EU, there is a right for a bank account. But this right does not cover anti-money laundering excuses to debank a person.
So it’s effectively a jail sentence, and that’s fine for people who break social rules, but we have built up a whole justice system for applying them. When government pretends taking away your bank is anything less serious, they just want to sidestep due process.
It's not government taking it away. It's a bank taking it away because they do not want to spend time and money to resolve the situation. The legal risk is high where as there is very little upside for retaining the customer relationship.
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There is a right for a personal bank account only.
Which is already a big improvement over the situation in America.
Being cut from the savings/investment/loan system would certainly suck and be unfair if you did nothing wrong, but much less than losing your basic bank account. That's where you receive/cash your pay, tax refunds, any government benefits, write checks (for things that are still paid that way by default), make transfers, etc.
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Not just seriously impaired, but outright impossible sometimes. For example, It is illegal to pay in cash above a certain amount, where I'm from. That means having a bank account is not an option, it is practically a requirement. If you don't have a bank account you simply can't buy a house, or a car.
There are thousands of banks hungry for your business. Just because one doesn't want to do business with you doesn't mean another one won't.
That is not true. All the banks must satisfy the same regulator. None of them are going to take a risk that invites audits from the big cheese to get your 20k in savings. The legal term to avoid here is “unilateral action” - don’t do what the other banks aren’t doing.
The list of problematic people is even shared between them by the regulator.
Due to the savings and loan crisis there is no longer a plurality of banking businesses each with their own independent thinking. There are 10 marketing corporations for the same government service. Same with mortgages.