The Los Angeles City Council is getting closer to banning cashless retail businesses. Tuesday, the council voted 13-0 to instruct staff to prepare a report examining cashless policies in other cities and to provide recommendations for a similar policy in Los Angeles.
Councilwoman Heather Hutt introduced the motion in August, looking out for the purchasing rights of all residents, whether they have bank or credit cards, or not. She said many Angelenos, especially low-income residents, are denied access to credit or are unable to obtain bank accounts.
“Others may not be able to participate in the formal banking system, or may be excluded from that system against their will. … barring the use of cash as a payment method means excluding too many people,” the motion reads.
According to a 2017 report from the Federal Deposit Insurance Corporation, 17% of all African-American households and 14% of Latino households in the U.S. had no bank account.
Hutt also noted that young people, the elderly and other vulnerable groups such as homeless and immigrant populations are negatively impacted when businesses don’t accept cash as payment.
“The city must remain vigilant in ensuring that our economy is inclusionary and accessible to everyone,” the motion reads. “In order to ensure that all city residents, including those who lack access to other forms of payment, are able to participate in the city’s economic life we should adopt an ordinance that allows them to pay cash for goods and many services.”
