Lexington County bank switch causes furor

Lexington County clerk of court Beth Carrigg’sdecision to switch banks has County Council worried about having to pay banking penalty fees and facing potential legal action.

The county signed a contract with BB&T bank last year that included the clerk of court accounts. So, by switching banks, County Council members said the county has broken the contract.

BB&T spokeswoman A.C. McGraw said the bank had yet to pursue any legal action.

But county officials said because account balances are lower than the contract requires, BB&T estimated it would need to charge the county as much as $120,000 in fees to make up the difference.

Carrigg said she had told county leaders she planned to switch banks and was not told she couldn’t. She signed a new contract with NBSC and did not know whether she would return the accounts to BB&T.

Carrigg said she sought out a new bank for such conveniences as an automatic teller machine in the courthouse, direct deposit, and other payment systems. The bank she selected was local, she said, and would better serve citizens.

“BB&T didn’t offer all the needs I had for the clerk’s office.

“I was never told that I had to be bound by that contract.”

Council said they wanted her to move the accounts back.

“We’re not interested in renegotiating,” Councilman Todd Cullum said. “It’s a three-year contract.

“It’s hard to do business with the county when the money is being deposited elsewhere.”

Carrigg, who was elected last fall, campaigned on improving services.

“If they didn’t want things done differently,” she said of voters, “would they have put someone new in office?”

Though Carrigg said she had talked to administrators about the new contract, council said Tuesday they learned of the change when BB&T officials notified them last month that deposits on some accounts were less than expected.

Lexington bid out its banking services for the first time, in part, because of the amount of banking fees accrued on some child support accounts in 2002 and 2004.

When the county set out its requirements, BB&T’s bid of $35,000 beat all others by at least $25,000.

Lexington was paying about $82,000 annually in banking fees.

Tuesday night, County Council voted to withdraw $240,000 from the clerk’s budget next year — in case the county is charged fees, Cullum said.

Seven council members voted to remove the money, with only Carrigg’s husband, John, voting against. Councilman Johnny Jeffcoat did not vote.

Administrator Art Brookssaid the county didn’t see the BB&T contract before it was signed, which is a violation of policy.

“I doubt that it’s legal at all,” said Councilman Joe Owens.

This is the second time this month that Carrigg and council have clashed. Earlier, Carrigg criticized a council committee that did not fund a new legal advice program for low-income resident.

Carrigg said she did not know if she would return the accounts to BB&T, but said it was in the county’s best interest to try to repair her relationship with council.

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