Centers for Underserved

Operation HOPE, Union Bank of California and Nix Check Cashing have opened their first joint service centers, providing banking and small-business services and financial counseling in underserved areas.

The centers should also help mute criticism that Union Bank’s purchase of a 40% share of Nix last March exploited low-income consumers by offering them relatively high-cost check cashing in place of formal banking services. Union Bank countered that it could attract new customers through the alliance.

Operation HOPE, which provides financial counseling and access to consumer and small-business loans to underserved areas, received a 5% stake in the partnership for its role: to provide credit counseling, home-buying assistance and other services.

The pilot centers, at three Nix locations, have been functioning quietly for about three weeks but rolled out to consumers with a marketing splash last week, said Joanne Curran, a Union Bank spokeswoman. Through the centers, Union Bank is offering applications for home loans, credit cards, checking and savings accounts; toll-free access to its customer service department; a full-service ATM with no surcharge for nonbank customers; and small-business loan and deposit services.

Operation HOPE is offering mortgage assistance, and consumer and business credit education information through brochures and a direct phone line. Neither entity is staffing the outlets.

The centers are at 1009 Martin Luther King Jr. Blvd. in Los Angeles, 140 E. Manchester Blvd. in Inglewood and 6583 Atlantic Ave. in Long Beach. Curran said the services are expected to expand to other Nix locations over the next two years.