A new poll has been released that details why some Americans cancel or close out their bank accounts.
According to Pew Health Group's Safe Banking Opportunities Project, the number one reason why Los Angeles' working poor close their bank accounts is because of hidden or unexpected fees.
"Working poor" is defined as individuals who are employed yet are still in a state of poverty. According to the Department of Health and Human Services, a family of four whose household income is less than $22,350 annually is impoverished.
In its report, Pew indicates that the rate of those who are "unbanked" – those who don't have a checking or savings account – has gone up during the last year.
"In today's economy, where every penny counts, more needs to be done to bring low-income families into the financial mainstream," said Susan Weinstock, project director at the Pew Health Group. "This data points to a real need for banks to better disclose their fees in a concise, easy-to-understand format."
Without a savings account, consumers may choose to increase their credit card use. Consumers would be wise to keep track of their credit report as a result, as errant marks made by creditors can adversely impact their credit score.