City Launches Program to "Bank on Marion"
By
Stephanie Tyrpak
By
Randy Livingston
Story Created:
Jan 25, 2012 at 6:37 PM CDT
Story Updated:
Jan 25, 2012 at 10:15 PM CDT
MARION -- More than 40% of the households in Marion bring in less than $30,000 dollars each year. They're also at the highest risk of going without a bank account.
For those families, a bank account can be the first step toward saving money and a way to avoid spending on services like payday loans and check cashing.
"They really have never had any connection with banking," said Marion Mayor Bob Butler. "Consequently, they wind up borrowing money at excessive rates."
With a goal of helping the "unbanked" and "underbanked" get on the right financial track, "Bank on Marion" joins four other cities in Illinois.
"It costs nothing for us to try utilize the plan to the benefit of a lot of people," said Butler.
The City of Marion showing support for nine local banks and seven non-profit organizations. It's a team hoping to assist those in need of a free or low-cost checking account.
"We're trying to give those people a second-chance or a first-chance to enter the mainstream banking market," said "Bank on Marion" Committee Chair Jennifer Olson.
Almost 6% of households in Marion have no bank accounts. Another 20% may have an account, but still rely on other financial services. It's a habit that ends with families spending hundreds in fees and interest.
"Check cashing, payday loans, money orders and things that cost a lot of money - up to 800 dollars a year," said Olson.
The partnered banks will offer free or low-cost "starter" checking accounts and provide extra time and information at account opening.
The banks also agree to accept people who may have made financial mistakes in the past..
"That we would all be willing to forgive a one-time occurrence of a non-fraud issue in check systems," said Olson.
Without bank accounts, households can be at risk of losing money to theft or in natural disasters.
Social service groups will be working to point "at risk" families toward the program.
"Bank on Marion" will also be hosting a financial education class on February 16th at the Marion Senior Citizens Center. The free class begins at 6:30 p.m. and is open to everyone. You can RSVP by calling 618-997-9019.
