AP IMPACT: More pain for unemployed a...

AP IMPACT: More pain for unemployed as banks turn profit on new...

There are 40 comments on the Chicago Tribune story from Feb 19, 2009, titled AP IMPACT: More pain for unemployed as banks turn profit on new.... In it, Chicago Tribune reports that:

Graphic shows states that issue bank card unemployment payments; includes how process works, with fees2c x 3 1/2 inches; 96.3 mm x 88 mm; 2c x 4 3/4 inches; 96.3 mm x 120 mm; First, Arthur Santa-Maria called ...

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PatrickHenry Lives

Chicago, IL

#21 Feb 20, 2009
This is just the type of ill-will (some may characterize as "evil") that has permeated our society and is eroding our economy. To have a fee for using a different bank or ATM service for withdrawels has always been standard practice, and is reasonable. However, a fee for using the ATM from the card-issuing bank and still being charged? Service charges for phone calls? This is despicable practice and the banks should be severely penalized by the feds, with substantial fines. The fines should then be used to reimburse those hurt by this and the substantial remainder going into Social Security funding.
Jack Stephens

Chicago, IL

#22 Feb 20, 2009
You lost me, I'm not sure I understand your point.
PJR wrote:
<quoted text>
How would providing debit card service for free generate business?? Would a restaurant generate business offering free food?? They would be busy yes. But being busy and generating business is not the same thing.
liner

Hicksville, NY

#23 Feb 20, 2009
PJR wrote:
.....To everyone .. why shouldn't people expect to pay for a service? Should being unemployed give you a free ride? Should you be allowed to skip paying rent, or paying for food, or heat, or a telephone.
How many people who find themselves unemployed actually try to cut back (ie. cancel cell phone service, or premium movie packages, or use mass transit instead of driving everywhere)
People need to take responsibility for themselves.
Why shouldn't people expect to pay for a service? When the "service" is to charge them to access their money. They are entitled by law to X dollars a week or month or whatever. Not X dollars minus a couple for "the house".
As to the rest of your post, I can see cancelling movies, but cell phone service? Try looking for a payphone if you're out looking for a job and need to call a prospective employer. Mass transit's a wonderful idea. Assuming the train or bus stops somewhere near where your job interview is.
You sound like someone who's comfortably employed. And good for you if you are, but I've been on the other side and know what it's like.
PJR

Williston Park, NY

#24 Feb 20, 2009
Outrageous wrote:
Fees are ok. They are a normal part of providing a service. However, they fees they are charging are disgusting. The article stated one woman was charged $6 for withdrawing $40. That's 15%...not for borrowing money, mind you, just for withdrawing money that belongs to her in the first place.
The woman made 2 withdrawals totaling $40.($3 per transaction).. and if she didn't use the host banks ATM her fees include a charge from the owner of the ATM and the bank her $$ is in.
PJR

Williston Park, NY

#25 Feb 20, 2009
Jack Stephens wrote:
You lost me, I'm not sure I understand your point.
<quoted text>
You suggested the bank provide the unemployment debit card service with no fee. Where is the benefit for the bank in that scenario?
Gandhi

Allentown, PA

#26 Feb 20, 2009
Paul Simpson, Brittany Sheehan - there's where we can start.

PJR - why are banks getting into unemployment compensation business anyway? They clearly can't make a go of good old fashioned banking services,(see Citicorp's stock price today below $2 a share), so let's rape those that we otherwise couldn't take advantage of. They expect us to bail them out, which results in the downward spiral in the economy which causes more to lose their jobs, and the banks turn around and start charging the very same people who bailed them out usurous fees (15%-$6 divided by $40) to get the money which their payroll deductions paid for in the first place!

The Stones were right - the time has come for fighting in the streets.
PJR

Williston Park, NY

#27 Feb 20, 2009
liner wrote:
<quoted text>
Why shouldn't people expect to pay for a service? When the "service" is to charge them to access their money. They are entitled by law to X dollars a week or month or whatever. Not X dollars minus a couple for "the house".
As to the rest of your post, I can see cancelling movies, but cell phone service? Try looking for a payphone if you're out looking for a job and need to call a prospective employer. Mass transit's a wonderful idea. Assuming the train or bus stops somewhere near where your job interview is.
You sound like someone who's comfortably employed. And good for you if you are, but I've been on the other side and know what it's like.
You're right people are entitled to their money and the banks are required to allow at least one withdrawal free of charge. However if a person chooses to access their money in small increments then they should be willing to pay for the convenience.
You are also right about me being employed (thank God). I use mass transit to get to work and it involves three transfers each way (2 trains and a bus). I've also seen public telephone at all the train stations and on every 3-4 blocks where I work.
PJR

Williston Park, NY

#28 Feb 20, 2009
Gandhi wrote:
Paul Simpson, Brittany Sheehan - there's where we can start.
PJR - why are banks getting into unemployment compensation business anyway? They clearly can't make a go of good old fashioned banking services,(see Citicorp's stock price today below $2 a share), so let's rape those that we otherwise couldn't take advantage of. They expect us to bail them out, which results in the downward spiral in the economy which causes more to lose their jobs, and the banks turn around and start charging the very same people who bailed them out usurous fees (15%-$6 divided by $40) to get the money which their payroll deductions paid for in the first place!
The Stones were right - the time has come for fighting in the streets.
The banks aren't in the unemployment compensation business; they are in the direct deposit business. The state approached the banks about ways to eliminate check issuance even for folks who don't maintain a bank account (which by the way are the only people impacted by the fee's referred to in the article) and the unemployment debit card was born.

As far as the fee - if checks were still being issued and people need to cash them with a check cashing company (remember this is someone without a bank account or they would have direct deposit) they would still be paying a fee.
PJR

Williston Park, NY

#29 Feb 20, 2009
FatNSassy wrote:
I would also be suspect of the sentiments that PJR is expressing. They sound like someone who is blogging for the banking industry. These hidden PR folks are everywhere, in many different types of industries. When a story comes out that can be damaging to some special interest, they call in the professional trolls. it is a established practice to manipulate public opinion, so they are on bulletin boards, in chat rooms, really everywhere!
p.s. States do allow for electronic transfer like SSI, but in many of those states folks have to wait longer for their money if they do it that way. Some systems are set up to make the debit cards the quickest way. As I said, the system is set up for the power-elite, not the people!
I'm not "blogging for the bank industry" I work for a bank and am trying to give you the other side of the story since the media likes to make corporations (banks in particular) look evil.
My wife is currently unemployed and she had her direct deposit by her second installment. As I said before the unemployment card can be used without a fee if the recipient withdraws all the money at once (which is what they would do if they were still getting a check).
GEO

Newington, CT

#30 Feb 20, 2009
PJR wrote:
To Jan .. the state does offer direct deposit to an individualís account. Not to mention almost every bank in the country now offers a free checking account.
To Crab .. most banks allow 1 or 2 withdrawals per week at no cost.
To everyone .. why shouldn't people expect to pay for a service? Should being unemployed give you a free ride? Should you be allowed to skip paying rent, or paying for food, or heat, or a telephone.
How many people who find themselves unemployed actually try to cut back (ie. cancel cell phone service, or premium movie packages, or use mass transit instead of driving everywhere)
People need to take responsibility for themselves.
ROFL - Your mindset goes both ways, Why are we using Tax Dollars to Bail out Banks that were careless with their money? First of all any Bank that gets Federal Dollars shouldnt charge this fee otherwise they are free to fleece whoever they want to make a buck, But remember "what comes around goes around".
American

Cockeysville, MD

#31 Feb 20, 2009
Common Sense in PA wrote:
PJR
The state does offer direct deposit into your bank account but informs you at the time you sign up for benefits that this option could take 8-10 weeks. They also push the debit card stating your benefits will be available in about one week. If your unemployed with no money coming in, which option do you think you would choose?
Choose the card. Make the one time (free) transaction, then deposit the money into one's checking account.

Other than the time issue that you mentioned, I don't see the advantage of using a debit card unless a person does not have a bank account.
liner

Hicksville, NY

#32 Feb 20, 2009
PJR wrote:
<quoted text>
You're right people are entitled to their money and the banks are required to allow at least one withdrawal free of charge. However if a person chooses to access their money in small increments then they should be willing to pay for the convenience.
You are also right about me being employed (thank God). I use mass transit to get to work and it involves three transfers each way (2 trains and a bus). I've also seen public telephone at all the train stations and on every 3-4 blocks where I work.
Fair points. I posted earlier that I would withdraw it all as soon as it's available.
Re: payphones. I assume you work in NYC. Otherwise, they're few and far between on LI.
PJR

Williston Park, NY

#33 Feb 20, 2009
Common Sense in PA wrote:
PJR
The state does offer direct deposit into your bank account but informs you at the time you sign up for benefits that this option could take 8-10 weeks. They also push the debit card stating your benefits will be available in about one week. If your unemployed with no money coming in, which option do you think you would choose?
I can't speak for PA but in NY the turn-around for the debit card or direct deposit is the same. My wife had her direct deposit by her second installment.
Jack Stephens

Chicago, IL

#34 Feb 20, 2009
Fair enough, I get your point now. Let me clarify.

What a PR bonanza for the bank that does provide debit card that doesnt charge any fees. There isnt enough money in the world to buy that kind of publicity, and if they backed it up with good service, they would have customers for a long time.

Care to comment on that specific scenario?
----------
PJR wrote:
<quoted text>
You suggested the bank provide the unemployment debit card service with no fee. Where is the benefit for the bank in that scenario?
Jack Stephens

Chicago, IL

#35 Feb 20, 2009
Ok, now you're just a garden variety prick with ears.

Why dont you quit your "good job", dump your phone (cell and land line, if applicable) and send out some resumes with the payphone number of the local "7-11" on it?

Please, come back and join us in the real world. I suppose the minimum might be to cut out the cell phone and keep a land line.
----------
PJR wrote:
<quoted text>
I've also seen public telephone at all the train stations and on every 3-4 blocks where I work.
Jim

Chicago, IL

#36 Feb 20, 2009
Oh, you are so helpful.
Yolanda wrote:
get a job
Mikey

AOL

#37 Feb 20, 2009
The state bureaucrats get a kickback from these fees. The only thing the crooked politicians, bureaucrats, and bankers will understand is a trip to the Guillotine.
doeeyes

Palatine, IL

#38 Feb 21, 2009
To borrow a line from another financial giant, "We make money the old fashioned way, we earn it". I don't know if this is actually true, since I don't have any money to invest, I'm just trying to survive. But as a former member of the financial community, the only thing deregulation did was give financial institutions a legal license to steal. Financial institutions have taken this to a level unimaginable 20 yrs ago and now that they're in trouble, we're paying for it, again and again. The greed just doesn't end.
James Reyes

Aurora, MO

#39 Feb 23, 2009
The card used in Illinois has a toll free number on the back that you can call to check your balance.
Banker

Virginia Beach, VA

#40 Feb 23, 2009
Banks are in business to make a profit. Like any business, if banks cannot make a profit they will fail. If your business had made more profit you probobly wouldn't be unemployed.

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