Banks Get into the Unemployment Biz, and Quickly Start the Rip-offs

[marmar]

via AlterNet:



Banks Get into the Unemployment Biz, and Quickly Start the Rip-offs

By Barbara Koeppel, Consortium News. Posted December 17, 2009.

As states pay unemployment benefits with bank debit cards, the jobless are seeing their fees add up.




While posting breathtaking profits in the last two quarters – Wells Fargo’s $3.2 billion, Citigroup’s $3 billion and Chase’s $2.7 billion – U.S. banks have figured out a way to squeeze some extra dollars from those who can least afford it, the unemployed.

Here’s how it works. In the past two years, states have been overwhelmed with unemployment claims. Always eager to serve, America’s banks offered a deal the states couldn’t refuse.

Sign a contract — which won’t cost you a dime — and send us your weekly unemployment funds, the banks said. In return, we’ll issue our VISA or MasterCard debit cards to your laid-off workers, on which we’ll post their benefits electronically.

Thirty states signed on with the usual suspects — Citi, Wells Fargo, JPMorgan Chase, Bank of America — and some smaller ones, too. More states are lining up.

In a stroke, states dropped all their costs for printing and mailing checks. Andrew James, with North Carolina’s Employment Security Commission, told me that in the past year, his state saved a whopping $10 million. During the same time, Nevada saved $800,000, Maryland $400,000 and West Virginia $340,000. ...........(more)

The complete piece is at: http://www.alternet.org/workplace/144653/banks_get_into_the_unemployment_biz%2C_and_quickly_start_the_rip-offs

[hobbit709]

1. The banks aren't going to get the point

until a guillotine is set up in front of their HQ.

[BR_Parkway]

3. I would love to see that

[corpseratemedia]

2. I enivison more "sternly worded letters" to the banks about this from our govt.

or maybe a little talking to with a touch of shaming mixed in

[Daveparts still]

4. Sternly Worded Letters

that will be forgotten about when candidate receives campaign check with many zero's

[FloriTexan]

5. Actually, my husband's card works out okay...

We learned you just go to your regular bank now and then to have them transfer the funds (at no charge) to our regular account - no more fees than we would normally have. That said, all banks should be waiving all fees associated with withdrawals, etc. on these cards.

[tapper]

6. Citi (Kansas unemployment) allows automatic transfer...

I haven't used the actual card at all. As soon as I got the card, I went to the web site, signed up, and set it up to automatically transfer the funds to my (local bank) checking account. If I make my weekly claim on Monday (via internet), the funds usually show about Thursday.

[FloriTexan]

7. I'll have to share that w/hubby - Thanks!