Saturday, February 21, 2009

Debit Cards used in place of unemployment checks rip-off the jobless

According to the AP there are 30 states that use or require the usage of debit cards so that the jobless can get their weekly unemployment compensation.

Large banks like Bank of America, JP Morgan Chase, Citigroup and US Bancorp strike deals with the states and then frequently charge fees on the jobless ranging from a $0.50 "balance check" fee to a $20 over-draft fee. The over-draft fee is especially hurtful, b/c the the banks could just as easily prevent an overdraft from occurring by issuing an "insufficient funds" message at the ATM.

The banks justify these fees as a convenience---but nickel and diming the jobless isn't the best way to start or maintain a banking relationship.

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