Banks and financial institutions can deny individuals access to financial services without explanation. This practice, sometimes referred to as debanking, disproportionately impacts justice-involved individuals.
Access to a bank account is essential for financial stability and economic mobility, yet many justice-involved individuals are excluded from this essential service.
Research has indicated that individuals with felony convictions frequently encounter challenges in accessing bank accounts and affordable financial services, leading them to resort to high-cost options or go without financial products and services.
The Wikipedia page on de-banking notes that the closure of accounts is generally performed without giving a reason and without the prospect of appeal. This practice can have severe consequences for individuals, as it cuts them off from many activities in society.
Without access, rebuilding and maintaining a stable life becomes incredibly difficult, increasing the risk of recidivism and perpetuating systemic inequities.
The de-banking of justice-involved individuals mirrors the denial of medical insurance for those with preexisting conditions. Examined in this way, it underscores the urgency of this issue.
Our Right to Banking Initiative seeks to ensure fair access to financial services for everyone, regardless of their past.