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12/2 U.S. - People turning away from banks to alternative services

Only a few years ago, banks wanted payday loan stores shut down because they were competition. Now the number of people no longer doing business with banks is growing at a rapid pace. They are turning to payday loan businesses.

The Census Bureau survey shows one of four households in the U.S. have already turned away from banks. The majority of them are minorities. 53% of African Americans and 43% of Hispanics are now using alternative financial services.

The payday loan businesses are saying they have seen an increase since the economy began to fall, especially when banks began to fail. Also, people just don't want to jump through all the hoops a bank makes you do. People don't trust banks as much anymore.

People are saying that, even though it costs more to do business at a payday loan store, it is costing them less because banks now have a fee for everything, especially if you bounce a check. Many banks are now charging over $40 for a returned check with insufficient funds.

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