Banks Charging for Unemployment Withdrawals

2009-02-21 00:21:30 (GMT) (WiredPRNews.com - Business, News)

Banks like Bank of America are charging for use of unemployment benefits debit card

Banks have begun charging individuals who receive unemployment benefits for use of their benefits debit card.

WiredPRNews.com – Many are taking issue with new bank policies that call for the imposition of fees for individuals who collect unemployment benefits. As reported by the Associated Press (AP), thirty states have deals in place with banks including Bank of America Corp., JP Morgan Chase, and Citigroup that incur fees for individuals collecting unemployment benefits.

Fees charged by these banks include those for making withdrawals of unemployment funds, checking card balances, and customer service calls. As noted in the report, overdraft fees may also be incurred and some banks generate interest revenue from state deposits.

Some state representatives like Rachel Storch of Missouri are calling for reviews of bank contracts with states, after receiving an influx of complaints from constituents. Storch is quoted in the report as stating of one arrangement in particular with Central Bank, “I think the contract is unfair and potentially illegal to unemployment recipients.”

Kenna Gortler, a laid off worker in Oregon, is quoted as stating of the issue, “It’s discouraging… People have limited funds and they don’t need to be giving money to the banks. They need to be keeping that money to feed their families and pay bills.”

Photo Credit: Brian Katt