Attention:  Members Of The U. S. House Of Representatives

DO FINANCIAL INSTITUTIONS HAVE YOUR CONSTITUENTS JUMPING THROUGH HOOPS . . .

tO GET BASIC BANKING SERVICES?

For many Americans, access to banking services if often difficult.  Sometimes it's next to impossible.

Financial institutions now charge for services they used to offer free of charge.  Many have raised fees on other services as well.

Many consumers have to budget for increased account costs, keep high balances, or give up their bank account altogether.

Many people need basic, no-frills bank accounts.  Some simply need a place to cash government checks.

The time to act is now.

Consumers must not be overlooked in the current financial services restructuring debate.  Before Congress allows any new activities, the banking needs of all customers, particularly low and moderate income customers, must be met.

Members of Congress, your vote can assure access to essential banking services for many of your constituents.

Chairman St. Germain's new banking proposal requires financial institutions to offer basic accounts and to cash government checks.

It's a reasonable solution.  This bill addresses most industry concerns without jeopardizing needed consumer protections.

The American Association Of Retired Persons urges you to:

• Support the basic banking and government check cashing provisions of Chairman St. Germain's new proposal; and

• Oppose any efforts to weaken these important provisions.

CONSUMERS SHOULDN'T HAVE TO JUMP THROUGH HOOPS TO GET BASIC BANKING SERVICES.

The American Association Of Retired Persons

American Association Of Retired Persons

AARP Creates "Hoopla" Over Consumer Banking Provisions

WASHINGTON, D.C. -- "Consumers shouldn't have to jump through hoops to get basic banking services" is the message being delivered today along with Hula-Hoops to the House Banking, Finance, & Urban Affairs Committee.

The American Association of Retired Persons (AARP) today delivered the Hula-Hoops to every House banking committee member to focus attention on important consumer provisions contained in the financial services restructuring proposal that the committee will consider on Wednesday, July 27th.

The Hula-Hoops carried a message urging support for the basic banking and government check cashing provisions of the proposal, sponsored by Banking Committee Chairman Fernand J. St. Germain.

"AARP supports the compromise language included in Title IV of Chairman St. Germain's proposal," said AARP Executive Director Horace B. Deets.  "We unequivocally oppose any attempts to weaken these important consumer protections."

"In particular, AARP opposes efforts to mandate direct deposit under the basic banking and government check cashing provisions.  Most low-income people -- the very people who needs these services -- do not and will not use direct deposit.  Many older persons are reluctant to use direct deposit as well."

"Why do banks want to mandate direct deposit?" asked Deets.  "As the result of the tremendous infusion of cash each month under a mandated direct deposit system, banks have the potential for reaping huge profits by investing funds before they are withdrawn from customers' accounts.  With over $18 billion paid in Social Security benefits each month, the potential industry income from the direct deposit, Social Security float alone could be between $63 to $132 million a year.  This windfall would obviously be much greater for all recurring federal payments."

"AARP does not accept direct deposit as a necessary pre-condition for basic banking and government check cashing services," said Deets.

"AARP is also very disturbed over a possible attempt to limit the availability of government check cashing privileges to very narrowly defined categories of government checks," Deets added.  "We see no valid reason to exclude government disability, veterans, retirement (including railroad retirement), state pension and teacher retirement benefits from coverage under the government check cashing provision.  All these people deserve a safe place to cash their government checks at a reasonable cost."

Passage of Title IV of Chairman St. Germain's proposal, without amendment, will require financial institutions to provide basic banking accounts and government check cashing services.

With more than 28 million members, AARP is the largest organization of people 50 and older.  The nonprofit, nonpartisan association offers a wide range of membership benefits, legislative representation at the federal and state levels, and educational and community service programs carried out through a national network of volunteers and local chapters.  AARP, based in Washington, D.C., also offers a variety of educational and advocacy programs for older workers, who make up one-third of AARP's membership.