Tags: Banks | Fees | Jobless | Benefits

Huffington Post: Banks Slap Fees on Jobless Benefits

By    |   Thursday, 10 Nov 2011 07:39 PM

Although Bank of America scrapped plans for its monthly $5 debit card fee, the Huffington Post reveals that the bank and other financial institutions have been quietly raking in debit card-related fees that prey on some of the most vulnerable Americans: the unemployed.

Bank of America and other financial firms such as U.S. Bank, Wells Fargo and JPMorgan Chase have contracts to provide access to public benefits in 41 states, the Post reports.

In a cruel irony, the same banks which triggered a financial crisis that claimed millions of jobs have figured out how to turn unemployment into a cash cow.

The larger the number of people who are out of work and dependent upon the state for sustenance, the greater the potential gains through administering their benefits, the Post reports.

Programs that pay unemployment benefits on debit cards have been applauded as cost-cutting measures. According to the Washington Informer, the District of Columbia will start its unemployment debit-card program in December. The switch from paper checks will save more than $1 million each year, the Informer reports.

New federal regulations cap what banks can collect from merchants when consumers swipe ordinary debit cards at store cash registers, the Post reports. The new swipe fee limits will cut Bank of America's revenues by $2 billion this year, the Post reports.

Those limits do not apply to most prepaid debit cards, making them particularly attractive to banks, experts told the Post.

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Although Bank of America scrapped plans for its monthly $5 debit card fee, the Huffington Post reveals that the bank and other financial institutions have been quietly raking in debit card-related fees that prey on some of the most vulnerable Americans: the...
Banks,Fees,Jobless,Benefits
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2011-39-10
Thursday, 10 Nov 2011 07:39 PM
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