- Debit cards hit jobless with ‘junk fees’, By Susan Tompor, May 11, 2011, Detroit Free Press: “Michigan’s debit card for jobless benefits hits the unemployed too hard in the pocket with ‘junk fees,’ a national consumer group said Tuesday. The group, which did a study of such cards for jobless people in 40 states, took issue with a fee on the Michigan debit card that charges $1.50 each time a purchase or ATM transaction is denied because there’s not enough money on the card. Another fee charges $1 to track the balance on the card at an ATM after two free balance inquiries each month at a network ATM. There are no free balance inquiries at out-of-network ATMs…”
- Report gives Ohio’s unemployment benefits card a thumbs down, By Sheryl Harris, May 11, 2011, Cleveland Plain Dealer: “The National Consumer Law Center says Ohio could have done more to protect citizens when it began delivering unemployment benefits on prepaid cards. The law center compared the prepaid cards issued by 40 states, giving Ohio’s card its lowest rating, a thumbs down. The biggest factor in the rating is the state’s decision to permit an ‘opt-in’ for overdraft coverage, which allows a card to be used even when there aren’t sufficient funds in the account to cover a transaction. Ohio’s card, issued through U.S. Bank, charges $17 per overdraft, but the big gripe about overdraft fees is that they tend to trigger additional deficits and even more fees. The law center report generally praised the Ohio card for providing ample fee-free services, including customer service calls, written statements, balance checks and withdrawals at U.S. Bank and VISA Plus ATMs. That’s better than some states, which charge consumers for both transactions denied for lack of funds as well as for checking their balances…”
Poverty-related issues in the news, from the Institute for Research on Poverty