Financial Education & Justice Resources (PDF Brochures):
Keep your “free account” totally free… Managing your account to avoid fees
Consular IDs and ITINs: Access to Financial Services for Immigrants
Banking in the Northwest Bronx: Find the best bank for you and open an account today!
Background:
In the summer of 2007, University Neighborhood worked with local community based groups to conduct a financial services survey as a tool to gauge the financial needs of Northwest Bronx residents. The two main objectives of the survey were to determine the prevalence of predatory financial services and to identify financial resources missing from the community. In addition to the survey, UNHP interns compiled a listing of local financial services including banks, check cashers, and wire services. The survey results:Financial Resources Needed/ Unhealthy Financial Practices
- 34.8% Identified Affordable Housing as Their Biggest Financial Need
- 38% Requested More Information or Help with a Financial Issue
- 67.6% Do Not Use a Budget to Manage Family Expenses
- 57.1% Receive Debt Collection Calls
Predatory Financial Services Utilized
- 27.8% Utilize Check Cashing Services
- 45.8% Utilize Tax Preparation Services
Many respondents identified affordable housing as the number one financial need in their community. UNHP has documented this need as demographics show that the low income northwest Bronx residents pay the largest part of their paychecks for rent –- even if they live in what is considered the most affordable part of New York City.
Predatory financial services such as Check Cashers, Pawn Shops, Rent-a-Centers, and Tax Preparation are commonplace in the Northwest Bronx. According to respondents the most prevalent services in our communities are Check Cashing and Tax Preparation.
A study produced by the Neighborhood Economic Development Advocacy Project (NEDAP) relates to the findings in our survey citing:
- New Yorkers lost more than $92 million of their tax refunds and credits through Refund Anticipation Loans (RAL), in 2004. This figure includes an estimated $48.7 million in tax prep fees and $43.4 million in RAL fees.
- Low-income neighborhoods are hit disproportionately hard. The 20 zip codes with the highest proportion of RALs have a median household income of $20,500 – far below the city-wide median household income of $38,300.
- RALs are overwhelmingly concentrated in predominantly African-American a Latino neighborhoods. The highest percentages of RALs city-wide are in neighborhoods that are 95% Black or Latino.
Greg Jost, UNHP’s Deputy Director, recently testified in front of the Financial Services and General Government Appropriations Subcommittee on protections against sub prime lending abuses and the predatory nature of financial services in low income neighborhoods. UNHP singled out the issue of Refund Anticipation Loans, as each year millions of dollars are siphoned out of the NWBronx in the form of high interest RAL’s.
Driven to provide an alternative to costly tax preparation and RAL’s, UNHP teamed up with Fordham Bedford Children’s Services, Fordham Bedford Housing Corporation, JPMorgan Chase and Food Change to provide free tax preparation and filing assistance to 146 NWBronx residents in 2008. UNHP assisted 146 clients file their taxes. Food Change completed 68 filings, UNHP completed 78 filings. The average income of clients was $15,181 and they received an average return of $344 Federal, $212 State and $323 from the federal economic stimulus package (total $879). Each person who used our services saved close to $200 over a storefront income tax preparation service and the cost of a (RAL) Rapid Anticipation Loan.
Beginning in the summer of 2008, UNHP signed on to use NEDAP's Financial Education and Justice Curriculum. Financial Education Manager Andres Romero and Financial Education Intern Theresa Moran are using the curriculum to provide workshops for neighborhood residents by partnering with neighborhood nonprofits such as Concourse House, Fordham Bedford Children's Services and the Northwest Bronx Community and Clergy Coalition.
UNHP highly recommends NEDAP's Financial Education and Justice Curriculum. For more information on the curriculum, contact NEDAP at 212-680-5100.
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