Welfare recipients pay banks millions in fees

[Liberal_in_LA]

Welfare recipients pay banks millions in fees
Marisa Lagos, Chronicle Sacramento Bureau

San Francisco Chronicle October 15, 2010 04:00 AM

Banks are making nearly $1.5 million a month in fees by charging California welfare recipients to withdraw their benefits using ATMs and debit cards - an amount that has nearly doubled since 2008.

-------------------------

By the end of this year, they estimate, more than $38 million will have been transferred from poor families to banks in the form of ATM and debit fees over the past three years. For example, in 2008, according to state figures, banks collected $10.1 million in fees from welfare recipients; this year, they are on track to collect more than $15 million. In June 2008, recipients paid out $833,000; banks collected $1.44 million the same month this year.


Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/10/15/MN5S1FRNI4.DTL#ixzz12TfHftRD

[thunder rising]

1. I went to cash a check the other day at the bank it was drawn on ... cost me $5. Wow,

I can afford the $5 now, but there was times the $5 was food.

[napi21]

3. Do you have an account at that bank? If not, it was probably

what they call a courtesy fee only levied on non customers. In the States where I lived (Pa. SC, TX, Ga & Pa.) if you didn't have an account at the bank they wouldn't cash a check at all!

[thunder rising]

4. Banks now own us. Originally, they promoted their paper as being as good as a dollar. But now

their paper is not worth the face value and apparently in some states they don't have to honor it at all.

The problem is that poor folks (which I have been in my life) sometimes don't have the choice of demanding cash for payment.

This is truly Reaganite. There is no way in hell a wealthy person (even criminal as hell) would not get full payment.

[thunder rising]

7. I must expand on your response, are you new? If banks can't trust their paper they need better

members. Hot checks come from members not from people cashing forged checks. In a forged check scheme the checks come from members. This is about fucking poor people that can't defend themselves and are NOT represented in any government.

If they would just vote. They would see this change.

[napi21]

2. I assume they're charging per transaction. How much are they

charging?

[sandnsea]

8. They charge for ATM withdrawals

If you use the card to purchase things, there's no charge. You get 2 or 3 free withdrawals a month, I don't know exactly. Over a certain amount, then they charge for the ATM. That's my understanding anyway.

[napi21]

10. If that's the case then I don't fault the banks. Everyone really needs

to use some common sense here. Make SURE you only make one or two withdrawls per month! That's not difficult!

[Ruby the Liberal]

11. Or utilize the cash-back function when making a debit purchase.

That doesn't count as a withdrawal.

[marmar]

5. This country's financial institutions would fall apart if they couldn't exploit the poor.

nt

[Mimosa]

6. Poor people can't afford those fees. n/t

[doc03]

9. They try and push an ATM card on you for unemployment in

Ohio. I heard you get charged a fee when you make any transaction. I am not sure since I signed up for direct deposit.