Big Banks Extracting Fees On Unemployment Benefits

These big banks are just plain evil….

I was in BB&T last week and saw a sign saying they would charge either $8 or $12 to cash a check drawn on their bank for people without an account of their own.  That should be illegal.

And now I see this?

Evil… just plain evil.

If banks are going to administer Government benefits, they should be required, by contract, not to charge the people receiving the benefits.  They still make money from merchants when debit/credit cards are used and that’s fine.  It’s soaking the beneficiaries, who can least afford it, that is just plain wrong….

Evil…just plain evil.

I don’t know why anyone deals with these banks who doesn’t have to do so.  The rest of us should be moving our money out to Credit Unions or, at the very least, local community banks….

Out of work and living on a $189-a-week unemployment check, Rob Linville needs to watch every penny. Lately, he has been watching too many pennies disappear into the coffers of the bank that administers his unemployment check via a prepaid debit card.

The state of Oregon, where Linville lives, deposits his weekly benefits on a U.S. Bank prepaid debit card. The bank allows him to make four withdrawals per month free of charge. After that, he must pay $1.50 for each visit to the ATM and $3 to see a teller. Managing his basic expenses, including rent, bus fare and groceries, typically requires more than four withdrawals, he says. Unexpected needs — Linville recently bought a sport coat for $20 to prepare for a job interview — entail more. He’s afraid to withdraw his full benefits in one shot, knowing that the bank could sock him with a $17.50 overdraft fee if he exceeds his balance. So he pulls out small amounts of cash as he needs it, incurring about $15 in fees in the last two months he says.

“I’m so broke,” Linville said, his voice expressing resignation that this is simply how the world works. “But I don’t really have any other options.”

Across the nation, people receiving a range of state-furnished benefits — from unemployment insurance and food stamps to cash assistance for poor families — are facing similar options and reaching the same conclusion. In 41 states major banks and financial firms have secured contracts to provide access to public benefits via prepaid debit cards. And banks are increasingly extracting hefty cuts of these funds through an assortment of small fees. U.S. Bank, JP Morgan Chase, Wells Fargo, Bank of America and other institutions hold contracts to distribute these benefits on prepaid debit cards.

via Banks Extract Fees On Unemployment Benefits.

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