UNIVERSITY PURDUE COOPERATIVE EXTENSION SERVICE MARION COUNTY OFFICE
Knowledge to Go 2004-2005
Get Checking Gaining Access to Checking Account Services
Impact Summary Not having access to checking account services is costly and inconvenient for consumers. The Get Checking Program gives individuals who need it an opportunity to qualify for access to checking account services. During the first 12 months of the Get Checking program, 503 consumers successfully completed the course. These consumers learned how to choose and manage checking accounts and now qualify for access to checking account services. According to Caskey (2002), individuals without access to financial account services pay an average of $400 each year in fees to cash checks and purchase money orders. Thus, the 276 individuals who have already opened checking accounts will likely save an average of $400 each over the next year and aggregate savings will likely exceed $110,000. When each of the 503 individuals who successfully completed the Get Checking program this year eventually open checking accounts, the aggregate savings over the five years they would have remained in ChexSystems will likely approach one million dollars. This is money that will now be of more benefit to strengthening the family financial security and building more financially stable communities. Issue If you mismanage your checking account, it is likely that your financial institution will close the account and inform ChexSystems, a consumer-reporting agency that collects information about account activity and shares it with other member financial institutions. Consumers who are reported to ChexSystems are typically unable to open an account for five years. In Indianapolis, no financial institutions will open a checking account if a consumer has been reported to ChexSystems; just one financial institution in the area allows consumers in ChexSystems to open a savings account. One local financial institution reported that approximately one out of three consumers who attempt to open checking accounts at their institution cannot because they are in ChexSystems. Not having access to checking account services is costly and inconvenient for consumers. In addition, it can cause embarrassment and compromise personal safety. Further, if a community wants to promote increased savings and reduced debt, not having access to a financial institution is an additional barrier to an individuals financial stability as well as to their long term financial security. What Was Done The Get Checking program was developed by University of Wisconsin Extension staff to give individuals who currently do not have checking accounts either because they have never had an account, or because they have had problems with their account in the past and were reported to ChexSystems an opportunity to qualify for access to checking account services. Participants who successfully complete the Get Checking program learn how to choose and manage checking accounts and are awarded certificates of completion. They are then able to open a checking account at a participating financial institution. Organized a collaboration of financial partners and educational partners who agreed there was a need to offer Get Checking to Indianapolis metro residents. Coordinated class offerings; managed the development of 10,000 promotional brochures per produced quarter; coordinated distribution of the brochure to participating financial institutions and promotional partners. Managed the registration of all participants and the distribution of teaching materials to each educational partner. Eight (8) instructors (from not for profit organizations) offered 67 different Get Checking6-hour programs between September 1, 2003 and August 31, 2004. Eleven (11) were cancelled due to lack of enrollment. Marion County Extension Educator taught nine (9) Get Checking classes to 64 participants. Co-leader for Staff Development offering How to launch a Get Checking Collaboration During the first 12 months of the Get Checking program, 581 consumers registered. Of those, 503 successfully completed the Get Checking course and earned their certificate. The typical Get Checking participant was a white female between the ages of 25 and 34 years old living in a household with 2 to 3 people and with a family income between $18,871 and $31,450.
Educational Partners have noted that the Get Checking program provides an opportunity for participants to gain knowledge about various services provided by the various partners. It also helps partners get better acquainted with variety of services offered. Impact Because it is possible they will need time to repay debts related to a previous account, participants who successfully complete the Get Checking program have one year to use their certificate and open an account. To date, 276 consumers have opened checking accounts at one of the participating financial institutions.
According to Caskey (2002), individuals without access to financial account services pay an average of $400 each year in fees to cash checks and purchase money orders. (Source: Caskey, John P., Bringing Unbanked Households Into the Banking System, Capital Xchange, January 2002.) Thus, the 276 individuals who have already opened checking accounts will likely save an average of $400 each over the next year and aggregate savings will likely exceed $110,000. When each of the 503 individuals who successfully completed the Get Checking program this year eventually open checking accounts, the aggregate savings over the five years they would have remained in ChexSystems will likely approach one million dollars. External/Individual/Agency/Partner Community Choice Federal Credit Union; Fifth Third Bank; FORUM Credit Union; Lincoln Bank; National City Bank; Union Federal Bank; Union Planters Bank; Indy Saves; Indianapolis Asset Building Campaign; WorkOne East; Family Service; John H. Boner Community Center; MOMENTIVE Consumer Credit Counseling; Purdue Extension Hendricks, Johnson and Marion Counties. Contact: Elizabeth Kiss, Ph.D. Purdue University 812 West State Street West Lafayette, IN 47907 Telephone: [phone] Email: [e-mail] Rebecca Haynes-Bordas, AFC Purdue Extension Marion County 6640 Intech Blvd., Suite 120 Indianapolis, IN 46278-2012 Telephone: [phone]
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It is the policy of Purdue Cooperative Extension Service, David C. Petritz, Director, that all persons have equal opportunity and access to Extension programs and facilities without regards to race, color, sex, religion, national origin, age, marital status, parental status, sexual orientation, or disability. Purdue University is an Affirmative Action employer.