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You also run into the situation where banks check your credit/banking history and may deny you an account based on that. My partner couldn't open a bank accou

You also run into the situation where banks check your credit/banking history and may deny you an account based on that. My partner couldn't open a bank account for years because they forgot to stop an auto payment after they closed the account and moved. Those payments bounced, leading to fees, which kept compounding and even after taking care of that, it took a long time to figure out how to clear the mark on the report (I don't know if we did, or it just eventually fell off due to time)

acheron 5y ago
> banks check your credit/banking history Those are not the same thing. Banks will deny you an account based on your history with bank accounts, sure. But not “credit history”, which is entirely separate.
PeterisP 5y ago
The EU solution for this was legislation that mandates that banks can not refuse a basic payment account. Being able to participate in electronic settlement is necessary to participate in modern society, so even a bankrupt person convicted of felony fraud should have a right to a bank account somewhere, and it's the duty of the society/government to ensure that they can obtain one.
- toomuchtodo 5y ago
  The US is attempting to pass similar legislation on America politics time. https://www.congress.gov/bill/116th-congress/senate-bill/3571/text https://www.congress.gov/bill/116th-congress/senate-bill/357... (S.3571 Banking for All Act) It also expands the USPS Postal Banking capabilities and mandate. Edit: The Federal Reserve's FedNow instant payment system going live in 2023 should also eliminate the need for check cashing in its entirety: https://news.ycombinator.com/item?id=28393576 https://news.ycombinator.com/item?id=28393576
sofixa 5y ago
If it's a regular checking account, with no overdraft, the bank loses nothing from having a person like that as a customer. The only money they can use is their own that they deposited there.
- jonahbenton 5y ago
  In US banking, many customers are relatively costly, with low balances, requiring branches with expensive people to service them. Overdraft happens often with them, and is a cost to the bank. They cannot be given credit, and are not otherwise candidates for other services by which banks make money. So fees- overdraft, deposit, withdrawal, desk usage, account- it is.
  - nradov 5y ago
    Banks don't have to allow overdraft. That's an optional lending service.
    - jpindar 5y ago
      But if they don't allow overdrafts, they can't charge overdraft fees.
      - keneda7 5y ago
        And you hit the nail on the head. It all comes back to the dollar in the end. Making the most money per customer.
      - jonahbenton 5y ago
        It is an optional service, one that is highly profitable ($billions per year for each of the large banks), and one also that arguably best serves the customer's interest, as not making a payment in most cases is far worse for many reasons for the user than making the payment and getting charged a service fee.

acheron 5y ago

> banks check your credit/banking history Those are not the same thing. Banks will deny you an account based on your history with bank accounts, sure. But not “credit history”, which is entirely separate.

PeterisP 5y ago

The EU solution for this was legislation that mandates that banks can not refuse a basic payment account. Being able to participate in electronic settlement is necessary to participate in modern society, so even a bankrupt person convicted of felony fraud should have a right to a bank account somewhere, and it's the duty of the society/government to ensure that they can obtain one.

toomuchtodo 5y ago
The US is attempting to pass similar legislation on America politics time. https://www.congress.gov/bill/116th-congress/senate-bill/3571/text https://www.congress.gov/bill/116th-congress/senate-bill/357... (S.3571 Banking for All Act) It also expands the USPS Postal Banking capabilities and mandate. Edit: The Federal Reserve's FedNow instant payment system going live in 2023 should also eliminate the need for check cashing in its entirety: https://news.ycombinator.com/item?id=28393576 https://news.ycombinator.com/item?id=28393576

sofixa 5y ago

If it's a regular checking account, with no overdraft, the bank loses nothing from having a person like that as a customer. The only money they can use is their own that they deposited there.

jonahbenton 5y ago
In US banking, many customers are relatively costly, with low balances, requiring branches with expensive people to service them. Overdraft happens often with them, and is a cost to the bank. They cannot be given credit, and are not otherwise candidates for other services by which banks make money. So fees- overdraft, deposit, withdrawal, desk usage, account- it is.
- nradov 5y ago
  Banks don't have to allow overdraft. That's an optional lending service.
  - jpindar 5y ago
    But if they don't allow overdrafts, they can't charge overdraft fees.
    - keneda7 5y ago
      And you hit the nail on the head. It all comes back to the dollar in the end. Making the most money per customer.
    - jonahbenton 5y ago
      It is an optional service, one that is highly profitable ($billions per year for each of the large banks), and one also that arguably best serves the customer's interest, as not making a payment in most cases is far worse for many reasons for the user than making the payment and getting charged a service fee.