Other Options Are Available

The “Poor” need access to ways to save money that are genuine.

Our objections to METABANK is that credit is extended to people who have a poor credit history. Their real need is to become savers.

MICROCREDIT: considered, but not found to be a panacea…. however, it does offer some pluses but only as a beginning step. Further efforts are needed, and real solutions must be found. 

Microcredit is the extension of very small loans (microloans) to impoverished borrowers who typically

  • lack collateral,

  • steady employment

  • and a verifiable credit history.

It is designed not only to support entrepreneurship and alleviate poverty, but also in many cases to empower women and uplift entire communities by extension.

In many communities worldwide, in developed and developing nations alike, women lack the highly stable employment histories that traditional lenders tend to require.

This reality might result from factors such as leaving the paid workforce to care for children and elderly relatives. As of 2009 an estimated 74 million men and women held microloans that totalled US$38 billion.[1] Grameen Bank reports that repayment success rates are between 95 and 98 per cent.[2]

Microcredit is a division of microfinance, which is the provision of a wider range of financial services, especially savings accounts, to the poor.

Modern microcredit is generally considered to have originated with the Grameen Bank founded in Bangladesh in 1983. Many traditional banks subsequently introduced microcredit despite initial misgivings. TheUnited Nations declared 2005 the International Year of Microcredit.

As of 2012, microcredit is widely used in developing countries and is presented as having “enormous potential as a tool for poverty alleviation.”[3]

Critics argue, however, that microcredit has

      • not had a positive impact on gender relationships,
      • does not alleviate poverty,
      • has led many borrowers into a debt trap
      • and constitutes a “privatization of welfare”.[4]

The first randomized evaluation of microcredit, conducted by Esther Duflo and others, showed mixed results: there was no effect on household expenditure, gender equity, education or health, but the number of new businesses increased by one third compared to a control group.[5]

Professor Dean Karlan from Yale University says that whilst microcredit generates benefits it isn’t the panacea that it has been purported to be.

He advocates also giving the poor access to savings accounts

…..It seems that most agencies that purport to serve the underbanked and the unbanked frequently end up  “applying the practices of loan sharks for their personal enrichment.[11] Indeed, the academic debate foreshadowed a Wall-street style scandal involving the Mexican microcredit organization Compartamos.”  instead of actually meeting the needs of the unbanked and underbanked. (per Wikipedia.)

This has been our complaint about  how METABANK treats their customers. METABANK is also going after the middle class now so anyone and everyone has been targeted by METABANK’s PREPAID CARD PROGRAM. If you think you are immune, then you have become far too complacent.

Consumers must demand real bank reforms, and no longer accept lip serve and double talk.

Highly paid Lobbyists advocate for the wealthy corporate interests and voters who are ordinary hard-working citizens seem to be ignored by legislation that has been put in place since 2008/2009. We now observe a proliferation of the PREPAID GIFT CARDS and as many complaints about how they are administered.

As Consumers, we must get out of the mind set that being in debt is acceptable and the norm. This is very unhealthy thinking. Banks are making huge incomes for their CEOs by abusing the most economically and financially vulnerable people in the world.

As Consumers, we must demand reforms that serve our interests and needs.

The banks will be fine so you won’t need to worry about them; their CEOs will make normal annual incomes and their entry level employees will earn wages above the poverty level. The banks’ CEOs haven’t been worrying about the quality of life for the people to whom they have been acting like loan sharks, and they could get by very well receiving a normal annual income.

The distribution of wealth is far too skewed at this time so that the very stability of the USA is at stake.

Oh sure, the blame can be pushed from one political party onto the other. That is exactly what the big corporate powers want is a Congress that can’t do anything but bicker. Large corporate powers own the media and what we are hearing is a lot of propaganda that is filled with hate talk. This is a distraction for most of us from how the corporate powers are taking advantage of the acrimony they are creating in society. 

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