States Shortchange The Unemployed With Junk Debit Card Fees: Study

[The Straight Story]

States Shortchange The Unemployed With Junk Debit Card Fees: Study

WASHINGTON -- Many states shortchange the jobless by distributing unemployment benefits on debit cards loaded with obnoxious fees, according to a new study by the National Consumer Law Center.

Of the 40 states that have switched from paper checks to prepaid debit cards, 22 states' cards charge ATM fees, 24 charge balance inquiry fees, and 28 charge inactivity fees. The cards in Arkansas, Idaho, Nebraska, Ohio, and Oregon come with overdraft fees ranging from $10 to $20.

And in Connecticut, Iowa, Rhode Island, and Tennessee, cardholders "must pay for every ATM inquiry or pay a denied transaction fee if they request cash when their balance is insufficient," the study says.

Tennessee stands out for having the card with the most "junk fees," the study says. Tennessee's card, provided by JPMorgan Chase, charges $1 for initial ATM withdrawals, 40 cents for balance inquiries, and 25 cents whenever someone swipes the card at checkout. It's one of just four states that doesn't provide even one free ATM withdrawal per deposit.

http://www.huffingtonpost.com/2011/05/11/states-shortchange-the-un_n_860606.html

[Wickerman]

1. Those companies are incredible

My credit union debit card gives me a nickel for every purchase at checkout, not a 25 cent charge.

Simple explotation.

:grr:

[RebelOne]

2. This article is about debt cards given

in payment for unemployment benefits Fortunately, in Georgia unemployment benefits are by paper check or direct deposit. I am drawing unemployment and receiving the money through direct deposit. I also have a bank debit card that does not charge me for using it.

[Rabblevox]

4. I get unemployment in Oregon, and the debit cards are hateful, but at least..

Here it's pretty easy to get your benefits direct deposited to my friendly local credit union.

[Wickerman]

5. understood

What I was hoping to do was to point out the disparity of businesses that want your business vs. those who exploit a captive audience.

[TimLighter]

3. Not only that but states are using the cards to intrude on the

liberties and privacy rights of the recipients.

Lawmakers respond to Missouri, Illinois welfare money spent in Las Vegas

by Chris Nagus
KMOV.com
Posted on May 11, 2011 at 10:45 PM
Updated today at 7:50 AM
(KMOV) -- Over the past six months, News 4 has uncovered abuse involving Missouri EBT and Illinois Link cards.
In January and February the cards were used in all 50 states including Alaska and Hawaii. A look at transactions in Las Vegas revealed several thousand dollars worth of TANF (Temporary Assistance to Needy Families) benefits were accessed near the big casinos and resorts.

In some cases those transactions took place in small neighborhood bars and casinos during the overnight hours. News 4 has also discovered several withdrawals at strip clubs in the metro east using Missouri EBT cards. The state of Illinois doesn't have a way to tell if Link cards are being used at specific ATMs inside strip clubs.

http://www.kmov.com/news/local/Lawmaker-response-to-MO-and-IL-welfare-money-spent-in-Las-Vegas-121666334.html

[toddwv]

6. SS is forcing everyone to move to these kind of debit cards.

All sorts of hidden fees that do nothing but take money out of the pockets of people with very little and give it to banks.

[Gormy Cuss]

7. Having the private sector manage the cards is allegedly cheaper

but in far too many cases what it really does is transfer costs to recipients via these allowed charges.

[Hannah Bell]

8. +100

[Mosby]

9. the article fails to point out

That "back in the day" any grocery store would cash a government issued check without ANY charge. All you had to do was buy something, further you could take a check to the issuing bank and cash it without a fee.

Do reporters think that check cashing centers have been around forever because they didn't exist much before 1980 and somehow people were able to cash checks.