Banking program: 'Everyone is welcome'

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By Connie Thompson & Herb Weisbaum

Summary

Just over a year ago, a group of banks, credit unions and nonprofit organizations in King County launched a program to offer free or low-cost banking account to virtually anyone, even people who've been shut out due to a banking industry database that track problem accounts.

Story Published: Sep 23, 2009 at 6:22 PM PDT

Story Updated: Sep 25, 2009 at 8:32 PM PDT

Banking program: 'Everyone is welcome'
SEATTLE -- In the past, Christina had some trouble handling credit.

"I ended up running up a ton of debt, and then eventually had to declare bankruptcy to get rid of it," she said.

That makes it nearly impossible for her to open a bank account, and that's a huge inconvenience is age of digital banking.

"You can't really live any more without one," she said.

Without a bank account, Christina had to rely on expensive money orders and check-cashing stores to pay bills.

Then a program called Bank On Seattle-King County came along.

Just over a year ago, a group of banks, credit unions and nonprofit organizations in King County launched a program to offer free or low-cost banking account to virtually anyone, even people who've been shut out due to a banking industry database that track problem accounts.

An estimated 80 percent of the banks and credit unions in the country belong to a network called ChexSystems. Having a negative banking history can doom your chance of opening a bank account anywhere for up to five years even if a spouse, or someone other than you is responsible for the problems.It's one reason many people turn to check cashing businesses that charge extra fees.

The program is called Bank On Seattle-King County and the motto is "Everyone is Welcome."

"If they've had a problem with a bank account in the past, if it was more than six months ago, they are going to possibly be eligible to open an account," said Diana Stone, director of Initiatives for the Seattle-King County Asset-Building Collaborative. "If they still owe money some of the banks or credit unions will require them to pay back that money."

Customers who open accounts are treated just like every other customer, and will have access to cash machines, debit cards, even free money management classes.

And Stone stresses the program is not just for people with bad banking histories.

"There are a lot of reasons people don't have bank accounts. I mean, some people might just think they don't have enough money and think the banks aren't interested. And that's why we say, 'Everyone is Welcome,"' she said.

The program appears to be working. After just more than a year in operation, nearly 4,000 people in the Seattle-King County area have opened bank accounts they never knew they could get.

Banks and credit unions have different requirements for opening an account based on your situation. And even though the program is focused on Seattle and King County, you don't have to live in King County to open an account.