Bank program aims to help those with a troubled banking past

Feb. 9--They've had troubled relationships in the past but want to straighten things out and turn over a new leaf.

Those are the consumers Anne Lee, First Bank retail president for Florida, is hoping to attract with a new pilot program for the "underbanked" in Manatee, Pasco and Pinellas counties.

"It is a second-chance program," said Lee, whose bank is partnering with Checking Network USA for the program.

The program targets two groups: people who have never had a banking relationship and need help in avoiding pitfalls like overdraft fees, and those who have had problems with banking accounts in the past and had their accounts closed.

"We are reaching out to the community and providing a financial education so that they can enter into a banking relationship now," she said.

The poor economy has "brought out people who wouldn't normally be in that situation; they've been pushed into a financial corner," Lee said.

The classes, which will be offered every other week at First Bank locations in the three-county area, will help consumers understand the different types of accounts banks offer and which one would best suit their needs. "We help them learn what is out there, how fees work, how to reconcile an account," Lee said.

Those who have faced problems in the past range the gamut of age and ethnic groups, she said. Some are young people who are going off to college and just opening an account for the first time. Others are people who never selected the right banking product and got into trouble with fees and overdrawn accounts.

The criteria for getting into the free program is paying off any money due from previous banking accounts and that there is no indication of fraud in the past, Lee said. People interested in signing up for a program should visit www.checkingnetworkusa.com and click on the First Bank icon.

Charles Conoley, president of Horizon Bank, said his community bank doesn't offer a specific program similar to First Bank, but does offer consumers "a very low cost fee structure."

"We have no monthly maintenance charge like some banks that have $10 to $20 a month," he said. Horizon Bank participates in the Junior Achievement Program where volunteers work with high school and middle school students to teach them banking basics, like how to balance a checkbook and write a check -- what Conoley likes to call "common life skills."

Whitney Bank, a regional banker based in New Orleans, offers "smart checking plus" -- seven ways account holders can avoid monthly fees, said Cheryl Jones, vice president and advertising manager. Some of the ways include direct deposit of payroll checks, a minimum $300 saving account balance, and being 55 or older.

Whitney also offers secured credit cards where people who have had a troubled credit history can repair their credit, Jones said.

Jennifer Rich, Herald business editor, can be reached at 745-7087.

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