Extra fees hit jobless

State-issued debit cards carry charges to withdraw benefits
By Christopher Leonard | The Associated Press | February 24, 2009


For hundreds of thousands of workers losing their jobs during the recession, there's a new twist to their financial pain: Even as they're collecting unemployment benefits, they're paying bank fees to get access to their money.

Thirty states have struck such deals with banks that include Citigroup Inc., Bank of America Corp., JPMorgan Chase and US Bancorp, an Associated Press review of the agreements found. All the programs carry fees, and in several states the unemployed have no choice but to use the debit cards. Some banks even charge overdraft fees, even though they could decline charges for more than what's on the card.

"It's a racket. It's a scam," said Rachel Davis, a 38-year-old dental technician from St. Louis who was laid off in October. Davis was given a MasterCard issued through Central Bank of Jefferson City and recently paid $6 to make two $40 withdrawals.

The banks say their programs offer convenience. They also provide at least one way to tap the money at no charge, such as using a single free withdrawal to get all the cash at once from a teller.

The fees are raising questions from lawmakers who recently voted to infuse banks with taxpayer money to keep them afloat.

Rep. Carolyn Maloney, D-N.Y., a member of the House Financial Services Committee, said the situation points to "yet another example of how we need to regulate the ways in which banks charge overdraft and other fees."

Some banks, depending on the agreement negotiated with each state, also make money on the interest they earn after the state deposits the money and before it's spent. The banks and credit card companies also get roughly 1 to 3 percent off the top of each transaction made with the cards.

Ten states — including the unemployment hot spots of California, Florida and South Carolina — are considering such programs or have signed contracts. The remainder still use traditional checks or direct deposit.

Wondering is enrollment in this program mandatory or by choice?

Seems they want to track how you spend it!!!!!

Pay $6.00 to take $40.00 of your own money and in my city.

what happens if you take your card inside the bank and see a teller??? Same fees?

The banks say their programs offer convenience. They also provide at least one way to tap the money at no charge, such as using a single free withdrawal to get all the cash at once from a teller.

Not sure whether it's mandatory enrollment or optional enrollment in this program.

Some states still remit checks and others direct deposit into an existing account holders account.

why should they be allowed to forego ATM charges?? Everyone else has to pay them.

just more poopy-pantsed crybabying...

The article said, "in several states the unemployed have no choice but to use the debit cards." That's the catch. They have no choice. That's the point.

"The remainder still use traditional checks or direct deposit." Why do some banks not let them have a choice to avoid the fees?

from your article:



again... why should I feel sorry for someone having to pay ATM fees?? Just because they're unemployed and receiving government aid?

whaaa.. my peepee hurts...

I dont pay ATM fees, and my question was hoping those on this program can let me know if their participation is mandatory or elective.

I'd see a doctor about that

Who is asking you to feel sorry for anyone? No one.

thanks Winx, must have just read over that... pretty much sucks to be unemployed, surviving on unemployment which is distributed by state max not by wages earned.

Uh.. you are.. by suggesting there's some reason for outrage that a certain class of people who use debit cards are being bilked by bank ATM machines.. :rolleyes:




you're asking people to out themselves being on unemployment? lol!! on a "dating" site? lololol!!!

The unemployed on this site have already told us that they are unemployed.

Uh.. you are.. by suggesting there's some reason for outrage that a certain class of people who use debit cards are being bilked by bank ATM machines.. :rolleyes:
wrong, posting in the current events section for those interested in news


many have and quite freely and yes on a "dating" site

and got the answer that it is not elective in certain states

That still is giving them no choice, IMO. Who wants to walk around with the cash? How are they going to write checks for their rent, house payments, and utilities with cash? They are being penalized.

Hmmm....you might have caught a STD. You better take care of that.

You're welcome, Fran.

I can't imagine what it's like right now to be unemployed and there aren't any jobs out there. I can't imagine what's it's like to fear that the unemployment will run out before one finds a job.
Unemployment doesn't even pay the bills.

Just no pleasing some people.. what was it Momma used to say about beggars and choosers??? What was it Daddy said about gift horses?

Besides, I thought Obama was going to take care of all of that...

http://www.youtube.com/watch?v=P36x8rTb3jI

"I won't have to worry about putting gas in my car. I won't have to worry about paying my mortgage."

Seriously. It isn't like they're choosing to be unemployed.

Since when has it become shameful to admit one is unemployed?

Have a little empathy, or at least don't show your lack of it. Banks aren't known for being empathetic either, so you have something in common with them as evidenced by this bit of news.

It's funny a guy just the other day was making fun of people off work and whining about their situation, as if it was their fault their company closed. He was so damn cocky, then guess what? He just lost his own job that he thought was so damn secure and boasted about it..

I hope the hell you don't find yourself in the same position Raiderfan. Personally I would take it all out at no charge, and be very careful of how I spend it. Screw the banks.

There is something really despicable about banks and others taking advantage of people at this time especially after they got so much backing with out much trouble at all.

Dude, I'm not taking up for the banks.. Don't put me in that boat at all! I can't stand the ball-washing bastards. Bank of America can dry up and blow away for all I care. Actually I think the world might be better off without their stupid antics.. that wasn't my point..

crying about ATM fees to access one's unemployment aid is a little much, in my opinion.. there are plenty of ways to get around that if one put one's industriousness to it. Don't people have savings and checking accounts anymore?? can't they transfer that money into a checking account?

I don't make a ton of money. maybe one day I will. I still pay taxes, though. I'm not going to see a penny from the so-called "Stimulus". I'm not going to get "mortgage assistance". No one is coming along to pay down my debt and clear up my credit history.. NOR WOULD I WANT IT!!! I refuse to steal a brick from my neighbor house to build my own.

so why should I give two flips about the "plight of the ATM fees"??? I got my "Life Sucks. Get a Helmet" helmet a long damn time ago. I've been out of work before. it sucks but you get your butt up and go do something until things get better. In my time out of work, I never went to the government with my hand out.