JP Morgan Chase Nickel and Diming the Last Nickels and Dimes from the UnemployedBy: emptywheel
Friday May 13, 2011 7:54 am
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The National Consumer Law Center just released a report
http://www.nclc.org/images/pdf/pr-reports/uc-prepaid-card-report.pdf on something that’s been a pet peeve of mine for some years: states’ increasing reliance on pre-paid cards to distribute unemployment compensation, rather than checks. (h/t Susie) As the report explains, issuing funds via a card is much cheaper for the states. But what’s really happening is that unemployment recipients end up paying for the cards out of series of fees the banks issuing the cards charge (which violates the law that says administrative costs should not come out of benefits).
The report spells out in detail how banks are screwing unemployment recipients in which state:
US Bank refusing to let AR post its fee schedule
PNC requiring recipients to work with customer service to transfer fees to their own bank account in IN
Chase charging $1 for the very first in-network ATM withdrawal in TN
Chase charging $2.75 for out-of-network ATM withdrawals in WV, even in areas without convenient access to a Chase branch
Chase charging $.25 for cash back with a purchase in TN and RI
Chase charging $.10 for every point-of-service use after the second one in CO
Chase charging $.25 for PIN transactions in ME and TN
US Bank charging $20 overdraft fees (on pre-paid cards!) in AR
Chase charging $1.50 for denied transactions in MI and WV
Chase charging $.50 to check a balance and $1 for insufficient funds in RI
Regions Bank charging a $2.50 90-day inactivity fee in AL
Chase charging $12.50 to issue a check to close out an account in CO and CT
Check out this state-by-state summary
http://www.nclc.org/images/pdf/pr-reports/prepaid-cards-state-by-state-highlights.pdf to see what your state’s card charges and how that compares with other states.
This list, of course, demonstrates another thing: Chase’s significant role in the market (it serves 13 of the 40 states that use pre-paid cards) and–aside from US Bank’s egregious overdraft fees–its use of the most abusive practices.
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More:
http://emptywheel.firedoglake.com/2011/05/13/jp-morgan-chase-nickel-and-diming-the-last-nickels-and-dimes-from-the-unemployed/:mad:
:kick:
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