Residents of a private halfway house in Colorado Springs say they struggled for weeks to access personal funds for food, medication and other necessities while their halfway house-issued checks were rejected by banks and check-cashing services.
The snag at Community Alternatives of El Paso persisted despite administrators’ promises to fix the problem and held up money that belongs to residents, who are required to hand over their paychecks and other income as a condition of their incarceration. The halfway house takes out money for rent and restitution and issues residents periodic allowances.
Remaining funds in the residents’ accounts are returned, minus any rent and restitution, after their release.
Starting in late August, CAE’s bank, Community Banks of Colorado, repeatedly refused to honor the allowance checks, but not before some residents believed they had successfully deposited them.
The resulting confusion caused some residents to overdraw their personal checking accounts, deepening their