News

Clubs crusade against bank policy

By Matt Dulin
The Daily Cougar

After watching his organizationis checking balance dip each month at the mercy of a new Woodforest National Bank policy, Nick Somarakis, president of the College Democrats, decided to take a stand by initiating a letter-writing campaign and student petition to reverse the policy and restore free checking.

In February, Woodforest Bank, which has a location in the University Center, adjusted its checking account policy to charge student organization accounts $5 each month their balances falls below $1,000 ? a sum Somarakis says many college organizations canit sustain all year.

Somarakis has now contacted more than 120 student groups on campus, with hopes to get the nearly 350 total on campus in on the campaign.

Meanwhile, his efforts to get the message out and get groups to voice their opinions against the policy have been positive, he said.

"Weive had a lot of people sign our petition, and when I tell them about whatis going on, they say, ‘Man, that sucks,i" Somarakis said. "Most people think (the new policy) isnit a good idea.

"Weire trying to get support from the general student body," he said. "They seem really enthusiastic about helping us out."

The National Organization for Women chapter on campus has worked closely with the College Democrats, Somarakis said, and heis received a pretty good response from a handful of other student organizations that have heeded his call to write letters to the bankis offices in Houston.

"This is something that really affects a lot of clubs on campus; most of them, really. A lot of clubs use Woodforest because itis so convenient … but Iid say that if Woodforest keeps the policy, clubs will pull their accounts," Somarakis said.

In his letter to Woodforest, Somarakis points out that if the $5 charge remains in place, his organization would be bankrupt within a year.

"Itis hurting us now, actually," Somarakis said. He also pointed out that during the summer, accounts often donit grow because clubs are relatively inactive during those months. 

And while Somarakis isnit returning as president of the College Democrats next year, he said he is fairly certain that if the policy isnit reversed soon, the organization will have to find a new bank.

"Iim sure many organizations will do the same," he said.

Somarakis is waiting until Friday before collecting all the petitions. He said he would then consult the bankis officials to figure out who needs to see the petition in order to make the change.

"This needs to get done now, and somebodyis got to do it. It might as well be (the College Democrats)," he said.

Somarakis said he spoke to a Woodforest employee about the change and its effects, but she could not comment on the reasons behind the new policy.

Woodforest Bank officials could not be reached after business hours Monday. According to the bankis Web site, the checking policy varies on the kind of account. Service charges, depending on the account type, can be levied if balances dip below $750 or $1,000.
 

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