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Mar 04, 2009 -- Unemployment compensation coming to you on a debit card?!
Citibank, Bank of America, JP Morgan Chase and US Bancorp are feeing the unemployed to death, according to a report from the Associated Press.
Talk about kicking people when they're down! Here's the scoop: Some 30 state labor departments are essentially outsourcing the handling of unemployment compensation to the banks. As part of the deal, the banks are issuing unemployment checks via piece-of-trash plastic debit cards. You get fees each time you use them -- even if you just check the balance to see what you have left!
This disgusting and outrageous behavior really highlights the ethical bankruptcy of the banks. And to the state employees who green-lighted this arrangement, is it really a good idea to rip the citizenry?
Bank of America spokeswoman Brittany Sheehan says the bank believes the fee schedule associated with the unemployment debit cards is "reasonable and consistent with similar programs." Yeah, right. If you have a choice between the plastic and the check…get the check!
And just when you thought the giant monster mega-banks weren't capable of another outrage!
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What others are saying
No Fees, lower costs
Debit cards issued for everything from child support to federal reimbursement programs, keeps costs down for everyone involved as well as speeds payment delivery up. No longer are there stop payments on checks lost or stolen. Countless payroll hours spent researching disappears. Its a huge money saver for those involved. However if the end user chooses not to follow the rules to check their balance(s), then what else can they expect but fees?>Doh.
no fees
I have been on unemployment since January of 2009 and have not had a single fee on my card. What the heck are you guys doing? I pay with it at the grocery store and maybe get 60 or 80 cash back...no extra charge for that. If i need extra cash just stop by a chase bank ATM or branch. No charge for that. check balance online once or twice a week. Again no charge for that.
Debit cards and Moronic State Workers
I'm in Kansas too and they are dealing with failed CitiBank, and want you to give CITI your other bank routing numbers so the funds can go from the debit card into your bank account. I DON'T WANT A RELATIONSHIP WITH CITI, A FAILED BANK NOW RUN BY THE GOVERNMENT, AND ONE WHOSE SECURITY HAS BEEN VIOLATED MORE TIMES THAN A PROSTITUTE.
Works OK in NY
I've had an unemployment compensation debit card for almost 3 years. NYS started using them in 2006. They are issued by Chase Bank.
When I first received it, I was pissed that I now had to jump through hoops just to get my money. However, I have come to like having the debit card. There are few fees with the NY cards, mostly having to do with out-of-network ATMs. But Chase even gives you a free foreign ATM withdrawal every month (you're at the mercy of the foreign ATM).
There are usually enough Chase Banks around so you don't have to use another bank's ATM. There are no fees for using the debit card for purchases & I can check my account on-line.
I guess either NYS negotiated a better deal than most other states or Chase is a better bank than other states are using. Oh, & NYS also allows direct deposit now.
Kansas on the "Stupid" list
Kansas is dealing with failed CITI. You can't get odd amounts out of your ATM due to $20 multiple withdrawl requirments. You can't get the full balance out due to ATM limits, so when you go back a second time the next day you get a fee. Forget the simple fact you have to search around for an ATM that is part of the network! You have an option to give your bank routing number to failed CITI and that will delay payment each week 2-3 days as the monry goes from your debit card to your bank. Or you can manually do a cash advance each week by going inside your bank - if you have one. The most disgusting part is that CITI charges merchants their standard fee if the unemployed person uses the card at a retail outlet! Yes, making money off the backs of the unemployed! The state employee told me "the state has gooten out of the check writing business"!! They are an insurer - it IS their business. I hope all insurers take this approach, as well as payroll companies and issue all these state trolls their money on debit cards! No wonder their approval rating is in the basement! Maybe soon-to-be HHS Secretary Kathleen Sebelius, Governor of Kansas, will institute the same thing for our healthcare funds. Doctors watch out!!
Maybe the comparison with Ohio is not 100% accurate, but there are just enough fees... especially the $17.00 overdraft fee... that guarantees that the Ohio plan will rake in big bucks for US Bank and VISA. I suppose that this was instituted by the nanny state to help those who do not have a bank account and depend on the parasites at the check cashing businesses. On the surface, this seems well intentioned, but that crowd will find some way to get fleeced anyway. Saving them a few bucks at everyone else's expense, in order to create profit for the big banks, is criminal. I just learned a few weeks ago that my state, WV, is planning on instituting a debit card system this month... as quietly as possible, with no fanfare, so there won't be outrage here. It's a disgrace.
US Bank not recipient of fees in Ohio
Clark, I love your show, but in the case of Ohio Unemployment, you're not 100% accurate. See the attached link (assuming it works in this "forum" for specifics about how the Ohio system works if you elect to receive compensation via the debit card instead of having it direct deposited to an existing account of yours.
http://jfs.ohio.gov/ouc/debitcardFAQ.stm#3a
Under my thumb
When are you people going to wake up and see what is coming down? This is about control - they are moving to control people by limiting their activities. Sure the debit card shakes a few bucks into the banker's pockets, but the real news is they can now limit when and where you spend the money! Wake up sheeple!
Like the lyric in that old Stones song: "Under my thumb..."
Unbridled greed, and the solution:
As long as we LET THEM, banks will do whatever they wish to get into our wallets. The solution: fire them all. Cut up the plastic and stop doing business with them and head to the local Credit Union instead. I walk the walk here. I just paid off my $6k Citi Visa debt and as soon as I can secure another CC from my own credit union, Citi is FIRED. My auto loan was financed through my CU as well. Banks and their sociopathic demeaner are on the way out. I urge everyone reading this to FIRE THEM. We vote with our dollars, and I say we vote them out of existance.
Unemployment Cards
"We have the best politicians money can buy." - Mark Twain
unemployment "visa" cards
HAVE NEVER BEEN A FAN OF MEGA BANKS..ESP BOA...BUT THE UNMITIGATED GALL OF THE BANKS AND STATES TO BE INVOLVED IN THIS EVIL ENDEAVOR ABSOLUTELY REEKS OF ABSOLUTE GREED AND AMORALITY! I AM CHECKING TO SEE IF GA IS PARTICIPATING...I SINCEERELY HOPE NOT!
