NYT: Paid via Card, Workers Feel Sting of Fees (also E action against McDonalds 4 this)

[Omaha Steve]

E-action against McDonalds for this, info below story: http://action.sumofus.org/a/mcdonalds-debit-card/?akid=1835.204932.VpQQ3q&rd=1&sub=fwd&t=1

http://www.nytimes.com/2013/07/01/business/as-pay-cards-replace-paychecks-bank-fees-hurt-workers.html?partner=EXCITE&ei=5043&_r=0


By JESSICA SILVER-GREENBERG and STEPHANIE CLIFFORD
Published: June 30, 2013

A growing number of American workers are confronting a frustrating predicament on payday: to get their wages, they must first pay a fee.

For these largely hourly workers, paper paychecks and even direct deposit have been replaced by prepaid cards issued by their employers. Employees can use these cards, which work like debit cards, at an A.T.M. to withdraw their pay.


Niko J. Kallianiotis for The New York Times

Natalie Gunshannon, 27, with her daughter, Anie Popish, 7, said she had to use a card because her employers would not deposit her pay directly into her account.


But in the overwhelming majority of cases, using the card involves a fee. And those fees can quickly add up: one provider, for example, charges $1.75 to make a withdrawal from most A.T.M.’s, $2.95 for a paper statement and $6 to replace a card. Some users even have to pay $7 inactivity fees for not using their cards.

These fees can take such a big bite out of paychecks that some employees end up making less than the minimum wage once the charges are taken into account, according to interviews with consumer lawyers, employees, and state and federal regulators.

FULL story at link.

http://action.sumofus.org/a/mcdonalds-debit-card/?akid=1835.204932.VpQQ3q&rd=1&sub=fwd&t=1

When single mother Natalie Gunshannon went to get her first paycheck from her new job at McDonald’s, she was in for a shock — McDonald’s gave her her wages on a fee-riddled debit card that would charge her every time she used it charging her $5 just for withdrawing money at the bank.

What’s more, when Natalie asked for a check, McDonald’s refused, saying she had to take the card — and the charges — or not take any money at all. This is a way for her local franchise operator to save a few dollars from the cost of cutting checks, by passing the burden on to its employees, pushing many of them below minimum wage.

Tell McDonald’s to ban the practice of forcing employees into fee-riddled debit cards.

The practice of replacing checks with expensive cards is gaining ground with employers around the country.It’s employee abuse, pure and simple telling workers that they have no choice but to accept unfair charges or go hungry.

But employers are forcing this upon their workers because they think they can get away with it. If consumers band together to punish businesses that engage in this horrendous practice, we can help stop it before it steals wages from more workers.



McDonald's: Stop forcing employees to use fee-riddled debit cards to cash their checks

[Kolesar]

1. This tale of woe was flogged on DU a few weeks ago

NY TIMES:
But she grew tired of being charged $1.75, in addition to the A.T.M.’s fees, to withdraw cash. After a tip from a co-worker, Ms. McLemore realized she could reduce her charges if she took out all her wages once a month. Now, supplied with one of the most modern banking products, Ms. McLemore has a decidedly old-fashioned way of handling her pay: it is stacked in a shoe box in her closet in $10s and $20s.
Why not?

[diabeticman]

2. It should be "flogged" every week until something is changed about this scam.

[Omaha Steve]

3. Seems there is a poll on this too

http://www.democraticunderground.com/10023137276