Controversial California bill would ban payroll cards
California Governor Jerry Brown recently vetoed Senate Bill 931, which would have banned employers from giving workers the option of having their wages loaded onto a debit-style payroll card.
Fox & Hounds Daily, which covers political and business news in the state, notes that unbanked workers who do not have access to direct deposit or bank accounts benefit from payroll cards. These bring them "into the financial mainstream and away from fringe services like predatory check cashing and payday loan services."
"I strongly believe that reasonable protections are needed for those who use pay cards," Brown said in his veto message.
Capitol Weekly notes that "studies have repeatedly shown that payroll cards are one of the least expensive and safest ways for employees to receive their wages."
According to the most recent FDIC National Survey of Unbanked and Underbanked Households - which was conducted in 2009 - an estimated 7.7 percent of U.S. households do not have a checking or savings account. This equates to approximately 9 million.
Fox & Hounds Daily, which covers political and business news in the state, notes that unbanked workers who do not have access to direct deposit or bank accounts benefit from payroll cards. These bring them "into the financial mainstream and away from fringe services like predatory check cashing and payday loan services."
"I strongly believe that reasonable protections are needed for those who use pay cards," Brown said in his veto message.
Capitol Weekly notes that "studies have repeatedly shown that payroll cards are one of the least expensive and safest ways for employees to receive their wages."
According to the most recent FDIC National Survey of Unbanked and Underbanked Households - which was conducted in 2009 - an estimated 7.7 percent of U.S. households do not have a checking or savings account. This equates to approximately 9 million.
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