In economically wobbly Las Vegas, more people use check-cashing and payday loans than national averages, and a rising number of locals do not have a bank account, a new report shows.
Some 15.3 percent of Las Vegas-area households reported using an “alternative financial service” in the past 30 days when surveyed last year, compared to 12 percent nationally. Another 14.6 percent of local households had used such services in the past year, versus 12.6 percent nationally, according to the Federal Deposit Insurance Corp., a banking regulator.
These kinds of lenders typically charge high interest rates and are often used by people who need cash quickly and don’t qualify for a traditional bank loan.
According to FDIC definitions, alternative services include non-bank money orders, check-cashing stores and payday loans, as well as pawn shops, refund anticipation loans and auto-title loans.
Meanwhile, 6.9 percent of Las Vegas-area households were “unbanked” last year, meaning they did not have an account with an insured institution such as a bank or credit union.
That was below the national rate of 7.6 percent but up from 2011, when the local rate was 6.2 percent.
Another 25 percent of local households were “underbanked” last year, meaning they had an insured account but also used alternative lenders in the past year.
That was above the national rate of 19.8 percent but an improvement from 2011, when the local rate was 33.2 percent.
The FDIC released its report, the National Survey of Unbanked and Underbanked Households, today.