Americans without bank accounts must wait for federal cheques

NEW YORK (AP) — As the coronavirus crisis took hold, Akeil Smith’s employer slashed her work as a home health aide to 25 hours per week.

Her $15-an-hour salary no longer provided enough to pay her $700 monthly rent, and she had to visit food pantries for groceries.

While millions of US workers have already received a quick relief payment from the federal treasury through direct deposit, Smith is among millions of others without traditional bank accounts who must wait weeks for paper cheques

When the cheques finally arrive, this disproportionately black and Hispanic population often has little choice but to use expensive check-cashing services to access the money.

“I live cheque to cheque, and right now I need more groceries,” Smith, 35, told The Associated Press as she stood inside Payomatic, a small check-cashing store in a predominantly black Brooklyn neighbourhood.

In the six weeks since the pandemic shut down much of the US economy, more than 30 million American workers have filed for unemployment insurance.

Congress passed a $2.2 trillion economic rescue package.

The government in April began sending $1,200 for each individual, $2,400 for each married couple and another $500 for each dependent child to poor and middle-class families across the United States. Wealthier families get either a reduced payout or nothing depending on their income.

To help smooth the delivery of the payments, the government launched an online portal for people to provide their banking information for direct deposit.

But that system offered nothing to people without savings or chequing accounts.

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