http://cptv.vo.llnwd.net/o2/ypmwebcontent/Chion/do%20120726%20Bank%20On%20CT.mp3
According to the FDIC, about 73,000 Connecticut households do not have bank accounts. These families often pay substantial fees to cash checks and pay bills, and may have a tough time establishing credit. There's a new state program aimed at helping the so-called "unbanked".
After bounced checks and financial difficulties, retired postal employee Juan Rosario was told by his bank that he’d never have another bank account or get a debit card.
"And I was under the assumption that that was true. And I heard about the program Bank Connecticut and I went to the seminar and they informed me that I could. It does actually work."
About half of CT’s unbanked households are Hispanic. More than half earn less than $15,000 annually. Some people worry about identification needed to open an account or there may be language barriers.
Liz Dupont-Diehl, policy director with the Connecticut Association for Human Services says, some people don’t trust banks.
"What happens as a result is that those who can least afford it are paying the most for alternatives to banking service."
The state’s pilot program to help those without bank accounts is called Bank on Connecticut. Participants take an orientation class and are matched with a local partner bank that provides affordable banking services.
"Many of our banking partners are interested in contributing to their communities. Citibank is playing a real leadership role in the Bank On collaborative."
Programs will be based in Bridgeport, Derby, New Haven, Norwalk and Stamford. Participating banks include Citibank, Chase, Webster and Start Community Bank.
