After Capital One announced Sunday its plans to purchase Louisiana-based bank Hibernia Corp., the future of many Hibernia services aimed at students — such as free checking and no minimum account balance — remain in limbo.
Steve Lousteau, Hibernia chairman for its south central region, said Capital One has not made any decisions regarding banking services. But Lousteau also said he does not see any reason why Capital One would alter the services that appeal to college students.
“The free checking that we introduced three years ago has been tremendously successful for us,” Lousteau said. “It’s an old cliche, but if it ain’t broke don’t fix it.”
Hibernia offers interest-free checking accounts and requires that users keep no minimum balance in the account. It also offers free gifts to customers who open accounts.
Lousteau said Capital One is a “smart” company with good business practices, and it plans to maintain the close ties with the communities Hibernia created.
“Customers will see the name change,” he said. “But the same people will work at the same branches.”
Lousteau said employee lay-offs are inevitable with any buy-out or merger, but because the two companies do not have many overlapping services, he expects lay-offs to be minimal. Capital One is a credit card company, and it does not offer many of the banking services Hibernia does, such as home loans or personal accounts.
Tuesday afternoon, students waiting in line for the Hibernia ATM told The Daily Reveille they use Hibernia because of its free checking offer or because their parents use the bank.
Aviance McLauren, a kinesiology freshman, said she chose the bank because it has so many branches in New Orleans, and because she can keep a zero balance in the bank at certain times and not incur charges.
Kenny Hebert, a history sophomore, said he could not pass up the free gift. He received an ice chest that doubles as a backpack when he opened his student checking account.
“They also gave me these really cool race car checks that have lasted me two years,” Hebert said.
Jared Jones, a landscape architecture senior, said he uses Hibernia ATMs because they are the only ATMs that do not charge fees to his Ascension Credit Union account.
“I don’t know how [the merger] will affect my account,” he said. “Hopefully it doesn’t.”
The merger is expected to occur in September, pending final approval from stockholders and regulators.