The Salina Journal from Salina, Kansas on May 4, 1997 · Page 24
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The Salina Journal from Salina, Kansas · Page 24

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Salina, Kansas
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Sunday, May 4, 1997
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Page 24
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THE SALINA JOURNAL MONEY SUNDAY, MAY 4. 1997 C3 T NATIONSBANK NationsBank serves biggest first Bank's most-profitable customers can call last but be helped first By ROBERT TRIGAUX Sf. Petersburg Times At NationsBank, customers deemed most profitable to the bank come first. Literally. Customers who call the bank's toll-free service centers soon will be answered in order of their contribution to the bank's bottom line. Less profitable customers will be left on hold longer. NationsBank said its new program is no different than those offered by airlines that give preferential treatment to first- class customers who pay more to travel. But consumer activists said NationsBank was treading on new ground by ranking who is — or is not — profitable to the bank, and they criticized the bank program as unfair to people of modest means. "By segregating customers on the basis of profitability, the working class will get poorer service," said Monte Belote, director in Tampa of the Florida Consumer Action Network. NationsBank plans to unveil its program first in Florida, then roll it out in the 15 other states where it operates. NationsBank has banks in Salina. The country's fourth largest banking company is notifying Florida customers in statement stuffers that those with strong "We want our best customers to get our best service." John Cleghorn NationsBank spokesman ties to the bank will receive preferred treatment when they call a toll-free number and enter a personal identification code. That number eventually will become the only number Na- tionsBank customers can dial for service. The ID code lets Nations- Bank match incoming calls to its computer file of customers and route inquiries from high- profit clients, representing the top third of the bank's customers, to waiting representatives. Other customers that fall in the lower two-thirds of Nations- Bank's profit analysis are put on hold until a separate bank of phone representatives can take the call. NationsBank's call centers handled 132-million inquiries in 1996. Charlotte, N.C.-based Na- tionsBank, which controls the third largest share of the Florida banking market, says it only wants to give priority service to its best customers. The banking industry has long complained that many of its customers who keep small accounts and buy little else are often money losers to banks and should expect less "Unbelievable. Eveiy customer ought to matter to NationsBank." Ed Mierzwinski U.S. Public Interest Research Group attention. NationsBank spokesman John Cleghorn acknowledged the sensitive nature of the bank's plans, adding that all of the bank's customers will continue to get "good" service. "But we want our best customers to get our best service," he said. NationsBank earned $709 million in the first quarter of this year, a 20 percent gain led mostly by higher service charges. The bank charged its deposit customers $101 million in the quarter, or 39 percent, more than last year for a total of $360 million. Consumer protection groups that regularly battle Nations- Bank's aggressive banking style, argued NationsBank is adding to concerns that banks want to cater to the wealthy and discourage lower-income customers. "This is unbelievable. Every customer ought to matter to Na- tionsBank," said Ed Mierzwinski, who tracks the banking industry in Washington for the U.S. Public Interest Research Group. He said NationsBank's toll- free program was as "arrogant" to consumers as the bank's ill- fated attempt in the early 1990s to pay interest on only 88 percent of the balances in interest- bearing checking accounts. A number of large banks already have computer systems that can identify which of their customers make or lose money for them. But these institutions, say they use that information only to help direct their sales efforts. NationsBank is the first bank to acknowledge it is taking the next step: using customer profitability data to determine levels of service. NationsBank isn't the first bank in recent times to generate consumer controversy with new services. First Chicago NBD Corp. in 1995 began charging $3 if some of its customers with low-balance accounts used a human teller. The Illinois bank was widely criticized but is now expanding the charge to its offices in other states. Other banks have followed First Chicago NBD's example by prodding customers of modest means to use accounts that rely heavily on ATMs and incur fees if they enter a branch. But NationsBank's program, in effect, automates the separation of high-profit from low- profit customers on the telephone. "This is more dangerous than charging to use a human teller because this creates a whole lower class of consumers," said Belote at the Florida Consumer Action Network. NOW PAYING... 8.00% 8.00% 5-YEAR Subordinated Capital Investment Certificates 10-YEAR Subordinated Capital Investment Certificates Thrsr srruritics arc IssnrH in ammmts nvcr $100 exrcpt the Monthly Iru-omi 1 Crrtifirati 1 which is ofTiTc'il in mlnimurns of $!">,000 nr niori- niul ailditionnl liuTcnii-nls "f $1.000 nr more. 5-YEAR Subordinated Monthly Income Capital Investment Certificates 8.50% 10-YEAR Subordinated Monthly Investment Capital Investment Certificates Interest rates in effect May 1, 1997. All interest rates are subject to change at any time prior to issue. If you wish to rrc-civr n Prosporlus, please cut ;U"iiR the dottrd lint-, rnmplrtp ;inil innil In Kiuinlntul For current interest rates anil Prospectus yon may also call: Farmland Securities Company U31S North Oak Tffwy. Kansas City, MO (ill Hi 1-800-821-8000 Ext. Oir>0 SIPC Tliis advertisement is neither an offer to sell or a solicitation to buy any securities. This offering is made only by the Prospectus. Name Address Phone Farmland Farmland Industries, Inc. Kansas City, MO 64116 GARY F. JUENEMANN 1-800-238-0241 INTEREST RATES BUILDING PERMITS These are the building permits recently issued by the Salina Permits and Inspection Department and Saline County Planning and Zoning Department. SALINA Commercial — 429 N. Ohio, Turbine Specialty, build wall and doorway, $500. 110 W. Otis, St. John's Military School, multiple-facility building, $3 million. The school is replacing Nichols Hall, built in 1944, with a building that will include a dining room, recreation center, world- class rifle range, barbershop infirmary and snack center. Single-family homes — 704 N. Fifth, Salina Habitat for Humanity, $38,000. 708 N. Fifth, Salina Habitat for Humanity, $48,000. 700 N. Fifth, Salina Habitat for Humanity, $38,000. 717 Dustin , Mid Kansas Homes, $30,000. 1401 Sherwood, Rex Broome, $141,500. 1748 Hillcrest, Kevin Turner, $175,000. Country Oak Estates, Donald Heidal, $85,000. ". 218 Pine Ridge, Vern Weis, ; $135,000. 413 Pine Ridge, Dennis Rogers, $150,000. 317 Pine Ridge, Dan Daley, 171,300. Residential miscellaneous — 1132 N. Santa Fe, Mary Lou Mallett, screen in porch, $300. 1207 Osborne, Derrick Lathan, egress window, $1,300. 2132 Linden, Tom Hogner, egress window, $1,300. 816 Pentwood, Norman Karlin, egress window, $1,300. 2426 Applewood, Rodney Graen- er, egress window, $1,500. 2063 Lambertson, Cynthia Larson, instaU fireplace, $1,800. 2972 Tasker, Tom and Diana Hanavan, swimming pool, $2,500. 313 S. Seventh, Ronald Ahrons, convert kitchen into bathroom, $900. 717 Huehl, Melvin Homes, finish room in basement, $1,000. 1001 E. Ellsworth, P and D Homebuilders, replace window with door, $1,100. 2952 Tasker, Steve Inglish, move wall to enlarge room, $1,425. 1801 Hillcrest, Kevin Jenkins, finish basement, $2,000. 2110 Knoll Crest, Greg Bengtson, finish basement, $9,000. 902 Millwood, Harold Woodruff, enlarge bathroom, $12,500. 822 Post Oak, Paul Long, finish basement, $14,500. 2200 Hunington, Gary Stroede, addition to house, $16,974. 817 Hancock, Lenny and Jacques Skiett, move garage, $2,750. 2972 Tasker, Tom and Diana Hanavan, storage building, $3,768. 1513 Ricky, Marion and Lynette Farr, $3,862. 105 E. Key, James and Alice Friesen, hobby shop, $5,400. 310 E. Minneapolis, Shelly Heinecke, enlarge family room in basement, $850. 1223 Fredrich, Sheldon and Danette Walle, build wall and install egress windows, $2,500. 513 S. 10th, Michael Larson, repair porch, $3,300. 2350 Hillside, C. L. Siemers, finish room in basement, $6,000. 2952 Tasker, Steve Inglish, plumbing and electrical work in basement, $7,400. Garage — 305 Scott, Daniel Sutton, $9,000. 1028 Eastgate, Leonard Knox, $11,869. 218 S. llth, Jim Blackwell, $16,000. 2024 Ridgeview, Russell and Gina Weaver, $22,000. 1407 Glenshire, Nancy Gourley, $4,500. SALINE COUNTY Single-family homes — 4601 N. Muir, Bill Came, $40,000. 4800 E. Farrelly, Rich Weber, $220,000. 3200 N. Holmes, Randall Crough, $60,000. Residential miscellaneous — 9167 W. Watkins, Stan and Maria Byquist, machine shed, $9,125. 201 W. Perrill, Kent Berry and Shannon Young, bedroom and bathroom addition, $12,000. 4800 E. Farrelly, Rich Weber, cattle shed and garage, $15,000. Garage — 3029 N. Link, Dave Root, $13,000. 4356 W. State, Don Struble, $2,400. Jean Curry 2737 Belmont 823-5129 we'll always be there for you. Shelter Insurance Cos., Home Office: Columbia MO 1. TAX-FREE MUNICIPAL BONDS** BONDS 'C 3. U.S. GOVERNMENT GUARANTEED Rates Effective as of 4-^-97 * Rate c.\prcsxed as a yiehl to maturity ** Mav be subject to alternative minimum ta\. BONDS 6.91% JMS Financial Services Insurance and Retirement Planning 913-823-3035 UNSCO/PRtVATE LEDGER 111 S. 5th Salina, KS 1-800-823-3034 MEMBER NASD and SIPC Jim Drake Jtll'l\ .S<7)t Kanl Sctwice '*«*# Weekly service in Salina with our convenient ^ tort r ' ^ f^vlci ^H^m 1»»' x^* 1 Ffn^Swvi 3f^«^ »->^ "Quality Waste Removal Service We Ye Here To Earn Your TYust Business ailored To Fit Your Individual Needs eady To Manage Your Funds And Explore Your Options nderstanding The Needs Of Our Central Kansas Customers ervice With Your Best Interest At Heart With Quality You Expect rusting And Caring Professionals At Your Service If you are not certain of who to turn to for your trust services, call our Trust Professionals today. Steve Stein Brenda O'Gonnan Central National Bank Saliira / 454 S. Ohio / 913-823-5700 Gypsum / 600 Maple / 913-5304231

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