Consumer Credit Counseling Service of Los Angeles Launches New Program to Assist Area's Unbanked.

Business & News Editors

LOS ANGELES--(BUSINESS WIRE)--July 25, 2001

On August 22, Consumer Credit Counseling Service of Los Angeles (CCCS-LA) will launch "Get Checking," a consumer education program sponsored by ChexSystems (eFunds), through which individuals excluded from banking services by choice or for (non-fraudulent) misconduct of checking accounts may once again access banking services with the cooperation of area banking institutions.

"A recent study by the Federal Reserve found that approximately 9.5 percent of U.S. families have no checking or savings account of any kind," said Joseph Onesta, director of education at CCCS-LA. "Of those, 7.3 percent are unbanked by choice."

Onesta believes that number of unbanked to be even higher locally and that through education, the unbanked can begin to accept and trust banks and credit unions as valuable financial management resources. "People who utilize check-cashing services, and then pay bills with cash or money orders, pay significantly more for those services than they would at a bank or credit union," he added. "Since they do not have an established relationship with a banking institution, they can also be at a disadvantage when seeking to finance major purchases such as a home or car. Education can help people avoid the pitfalls of poor account management and keep them in good standing with their financial services company."

Get Checking, which consists of a curriculum of six hours of instruction in a group setting, followed by a quiz, provides participants with a certificate which allows them to open a qualified checking or savings account at a participating financial institution such as Bank of America, Wells Fargo, Washington Mutual or Wescom Federal Credit Union, all of which have signed up for the program.

For consumers who have been reported to ChexSystems (a national tracking system used by banks to assess new account applications), the outstanding debt must first be repaid. There is normally a five-year exclusionary period for consumers reported to ChexSystems, but successful completion of this program will waive this requirement.

In the Get Checking courses, participants pay $45 (in Los Angeles County) to learn "banking basics" from financial educators, financial institution representatives and from hands-on experience working with a model checking account. Classes are scheduled for 6:30 to 9:30 p.m., Wednesday, Aug. 22 (Part One) and Thursday, Aug. 23 (Part Two) at CCCS-LA's Mid-Wilshire office, and 6:30 to 9:30 p.m., Monday, Aug. 27 (Part One) and Tuesday, Aug. 28 (Part Two) in CCCS-LA's Granada Hills office. Call 800/354-2170 for further information and to preregister. Plans to extend the program are underway.

Get Checking is based on a pilot program developed by ChexSystems (eFunds Corporation) and CCCS of Milwaukee. CCCS-LA is the coordinating agency for the Southern California counties of Los Angeles, Kern, Riverside, San Bernardino and Ventura.

Established in 1966, Consumer Credit Counseling Service of Los Angeles is a non-profit organization dedicated to helping individuals and families learn how to prevent and solve financial difficulties. The group offers professional programs including consumer credit education, confidential individual counseling and the implementation of debt reduction plans. A HUD-approved counseling agency, CCCS-LA also offers home pre-purchase counseling and education, reverse mortgage counseling, as well as default and foreclosure prevention and intervention. Appointments for low-cost, confidential, debt counseling in person or by phone may be made by calling 800/750-2227.

Headquartered in Commerce, CCCS-LA branches are also located in Bell, Palmdale, Pasadena, La Mirada, Long Beach, West Covina, Torrance, Santa Monica, Valencia, Glendale, Woodland Hills, South Central, Culver City, Cerritos, Granada Hills and Mid-Wilshire. For further information on the organization, visit CCCS-LA at http://www.cccsla.org.