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RandySF

(59,477 posts)
Tue Apr 7, 2015, 11:02 PM Apr 2015

Kansas Welfare Bill Would Cut Into Benefits With ATM Fees

But the benefits are intended to subsidize basic living expenses. State Senator Oletha Faust-Goudeau, a Democrat who represents the Wichita area, told the Wichita Eagle that some of her constituents rely on welfare benefits to help cover rent, a large, lump-sum cost that — for people without bank accounts — usually needs to be made in cash.

Under the new rules, if someone receiving benefits plans to use her money to make a $600 rent payment, she’ll need to start withdrawing money and setting it aside 24 days in advance.

Actually, she’ll need to start even earlier than that.

That’s because Kansas’s debit cards come with a $1 fee for every ATM withdrawal. So over 24 days, this hypothetical woman would lose $24 dollars in fees; she’d need to start one day earlier to make her rent payment.

And even that precaution would leave her coming up short. The Kansas cards charge $1, and the bank ATM usually adds on another surcharge fee. According to the GAO, the average ATM withdrawal surcharge was $2.10 in 2012. That lowers the real maximum withdrawal to $21.90 per day. At that rate, a person receiving benefits will need to make a withdrawal on 28 days per month (no margin of error in February) to set aside enough to cover rent.


http://fivethirtyeight.com/datalab/kansas-welfare-bill-would-cut-into-benefits-with-atm-fees/

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Kansas Welfare Bill Would Cut Into Benefits With ATM Fees (Original Post) RandySF Apr 2015 OP
And have no money available.... daleanime Apr 2015 #1
Wow... screwing over benefits recipients *and* the businesses they patronize Recursion Apr 2015 #2
It's the prejudice of people who have more, over those who have less. delrem Apr 2015 #4
I can't believe how malicious this is shenmue Apr 2015 #3
Fortunately they can purchase money orders for their rent JimDandy Apr 2015 #5
How so? They still need the cash to purchase the money orders. Back to the $25 limit per day.....nt okaawhatever Apr 2015 #15
I think you can use a debit card to get a postal money order dsc Apr 2015 #17
Grocery stores have point of sale machines JimDandy Apr 2015 #18
No, that would be considered cash. If not, they could simply buy money orders and address them to okaawhatever Apr 2015 #20
I read the whole bill. Money Order purchases JimDandy Apr 2015 #21
Very rarely am I surpried by much these days...in my old age jaysunb Apr 2015 #6
Or more likely $20 a day -- less the fees starroute Apr 2015 #7
Im speechless. BeanMusical Apr 2015 #8
I think I read somewhere that they can make withdrawals for more than $25 at a bank. WillowTree Apr 2015 #9
If they have a bank account, yes Recursion Apr 2015 #13
What are the fees for having a bank account without having something like $1500 average daily okaawhatever Apr 2015 #16
The state should lower its fee in February so that there is a day margin of error in February progree Apr 2015 #10
Oh it's wonderful how the banks take a taste of even welfare checks. Kablooie Apr 2015 #11
Race to the Bottom daredtowork Apr 2015 #12
additionally most atm's give out in increments of 20.00 so that means even more withdrawals demtenjeep Apr 2015 #14
Republicans want to make life harder and harder for the poor AZ Progressive Apr 2015 #19
And give Welfare dollars almost directly to banks. Win-win. Orsino Apr 2015 #23
Punch cows, not poors. n/t Orsino Apr 2015 #22

Recursion

(56,582 posts)
2. Wow... screwing over benefits recipients *and* the businesses they patronize
Tue Apr 7, 2015, 11:12 PM
Apr 2015

The obsession people have with punishing the poor is mind-boggling.

delrem

(9,688 posts)
4. It's the prejudice of people who have more, over those who have less.
Tue Apr 7, 2015, 11:21 PM
Apr 2015

The most denied, yet also the most universal, prejudice that exists in human politics.

JimDandy

(7,318 posts)
5. Fortunately they can purchase money orders for their rent
Tue Apr 7, 2015, 11:42 PM
Apr 2015

or other big bills with no charge other than the money order fee. I think it might take 2 money orders (with a fee for each) to pay a $600 rent bill, but still, that's more doable than trying to get to an ATM machine 28 days in a row to pay rent.

I think the idiot woman who sponsor the amendment reducing the proposed withdrawal amount from $60 to $25 was more interested in the government tracking TANF recipient's purchases, because they aren't charging for point of sale transactions (which track purchases made with the EBT cards--including money orders).

Will it be the state or the debit card contractor that gets the huge windfall in interest when all that money sits there unable to be pulled out except $25 cash at a time?

This unfair burden on the poor need to gets reversed. I hope Kansas EBT recipients, landlords and non-profits will petition the governor to not sign this bill into law.

JimDandy

(7,318 posts)
18. Grocery stores have point of sale machines
Thu Apr 9, 2015, 04:17 AM
Apr 2015

available at the customer service counters where they sell money orders. Therefore customers should be able to just swipe their EBT cards to purchase them right?

okaawhatever

(9,469 posts)
20. No, that would be considered cash. If not, they could simply buy money orders and address them to
Fri Apr 10, 2015, 07:04 AM
Apr 2015

themselves or to a friend.

JimDandy

(7,318 posts)
21. I read the whole bill. Money Order purchases
Fri Apr 10, 2015, 08:27 AM
Apr 2015

and cash returns at point of sale machines are not prohibited. The $25 limit affects just cash withdrawals at ATMs.

jaysunb

(11,856 posts)
6. Very rarely am I surpried by much these days...in my old age
Tue Apr 7, 2015, 11:48 PM
Apr 2015

but this thing about Kansas really has me scratching my head and asking, "who in hell ARE these people."

After days of hearing about this insane and stupid legislation designed to further cripple poor people, I decided to take a look at their demographics to try and figure out if what's happening there is just more racism and a new found way to punish people who may very well be of color, and poor to boot. (the regular motivation)

Well (in my best Gomer Pyle voice) surprise, surprise, surprise ! Turns out Kansas is almost 85% white and less than 6% black. There are less than 3 million people statewide (about the number of folks that live on my street. LOL) and they live in one of the least diverse states in America. So what would have prompted it's legislators and elected officials to always seem to spend time screwing the populace ? Surely, these people either know someone or are related to someone receiving public assistance. Is it possible that some of the very ones effected by this cruelty voted and helped elect these same officials and representatives ?

Maybe I'm missing something, or there's really something wrong in Kansas.

starroute

(12,977 posts)
7. Or more likely $20 a day -- less the fees
Wed Apr 8, 2015, 12:04 AM
Apr 2015

Since ATM machines typically only pay out in twenties.

On edit: Though thinking about it, the person wouldn't get $20 less a fee. They'd get the full $20 but the fees would come out of their balance. Still, if they withdrew $20 every day -- as they might have to for bus fares or other small change items -- they'd be losing nearly $100 in the course of the month.

Recursion

(56,582 posts)
13. If they have a bank account, yes
Wed Apr 8, 2015, 11:06 PM
Apr 2015

I do think part of this is a push to get more recipients "on the grid", but the problem is that The Grid for the most part doesn't want them.

okaawhatever

(9,469 posts)
16. What are the fees for having a bank account without having something like $1500 average daily
Thu Apr 9, 2015, 12:11 AM
Apr 2015

balance? $10-15 bucks per month.

progree

(10,927 posts)
10. The state should lower its fee in February so that there is a day margin of error in February
Wed Apr 8, 2015, 12:48 AM
Apr 2015

[font color = "gray", size = 1]{sarcasm thingy}[/font]

Kablooie

(18,644 posts)
11. Oh it's wonderful how the banks take a taste of even welfare checks.
Wed Apr 8, 2015, 01:01 AM
Apr 2015

more welfare for the rich!

Boy! That's rich!

daredtowork

(3,732 posts)
12. Race to the Bottom
Wed Apr 8, 2015, 01:02 AM
Apr 2015

The idea may be also to literally chase poor people out of the inhospitable State so other resources won't have to be spent on them.

 

demtenjeep

(31,997 posts)
14. additionally most atm's give out in increments of 20.00 so that means even more withdrawals
Wed Apr 8, 2015, 11:46 PM
Apr 2015

Michael ODonnell is a sniveling little Koch sucker

AZ Progressive

(3,411 posts)
19. Republicans want to make life harder and harder for the poor
Thu Apr 9, 2015, 04:30 AM
Apr 2015

Sadistic fuckers can't have enough hurting the weak. They might justify it saying that the poor are "eternally damned" as says Calvinist theology, but then that just shows just how evil religion can be.

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