San Diego’s Faith Based Credit Union: A second chance at banking with personal first rate service!

Sometimes, its not always easy to open a new checking or savings account.  Perhaps you have bounced a few checks, or maybe overdrawn the account, or your overdraft protection gets used…a lot.  If this is the case, your name and social security number has almost certainly been placed into the national check systems database. 

The check systems database is an information collection service used and contributed to by most banking institutions in the United States.  Banks report patterns of customer behavior such as bounced checks, non-sufficient funds, abuse of overdraft protection and other transgressions that cost the banks money.  The check systems, in turn, report the quantified amount of the loss to the bank, and create a list of individuals who have demonstrated patterns of behavior that cost banks money.

Banks use this information to “minimize exposure to such account holders, and thus minimize the bank’s risk.”  For an individual on the check systems list, it can be difficult to find a financial institution that will provide an account.

Seven years ago, Dan Scott decided that these were precisely the individuals he wanted to help with his Faith Based Credit Union in San Diego County.  Dan had been a banker for more than 20 years, and when his bank was merged into a larger bank twice in one year, he decided it was time to get out and do something to really help people.

“I came from a small bank where personal service and relationships really meant something. I wanted to bring that level of service to our credit union members,” he says.

Members are an important distinction to Dan.  A bank has customers that pay fees and are a source of profit for the bank to pass on to the shareholder owners.  The bank’s job is to make as much money as possible for the shareholders.  That is not how a credit union works.  “A credit union is a not-for-profit institution, owned by its members, who pool their resources together and help one another,” according to Dan.  A credit union provides services and is actually governed by its members.  Without the profit motive, credit unions often provide the very same products as banks, but at a much lower cost to its members.

Currently, Faith Based only offers a few products, but they are truly affordable and come with great personal service.  You can open a savings account with a minimum of $5 (but the $5 account set up fee will be waived if you mention this article!).  The credit union encourages direct deposit and provides 6 free checks per month to pay recurring bills.  The account also offers a re-loadable debit card for point of sale purchases and money from the savings account can be transferred to the card with a simple call to Faith Based. 

“Much of what we do is based on educating our members to avoid unnecessary fees,” Dan says.  “We encourage them to set up a budget, and get cash when they are doing their weekly shopping to avoid ATM fees.” 

The cost of the debit card is subsidized for the first year, thanks to a small grant, and after the first year, will be only $2 per month.  The credit union’s long term goal is to become a full feature credit union with loans, credit assistance, and even an IDA program.

Dan and his staff have certainly earned the name Faith Based.  Since its inception, 100% of the staff have been volunteers who just want to make a difference.

Through their association with the local CDFI, Dan and his staff have provided financial education to participants in the local Family Self-Sufficiency program.  The program goals include helping participants develop a budget, save $500, and increase their credit score by 50 points.

Dan has also worked with transition age at-risk youth, disabled veterans, and has presented at disability outreach events to bring his message of economic self-empowerment to people. “If we have to go to food banks to perform outreach, we will, and we have,” Dan says. 

For more information, visit Faith Based Credit Union’s website, www.fbcdc.org or call them at (760) 721-2117, ext. 302.

To find a credit union near you, check out the National Federation of Community Development Credit Unions, www.natfed.org.

Lots of people like Dan are out there and want to help people with disabilities become more financially empowered.  Take that step, make the call, and start expecting more!