Are You Kidding Me? Jobless Debit Card Fees Rile Some

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INDIANAPOLIS -- A debit card, the modern-day equivalent of an unemployment check for those without jobs, is raising the ire of recipients who are slammed with fees when they use the cards.

People who receive unemployment benefits are issued debit cards, but they can only make one withdrawal for every deposit, or be fined, 6News' Dan Spehler reported.

Additional withdrawals cost $1.25, money that is pulled out of the unemployment funds.

"They should have a waiver on the unemployment card," said one unemployed man. "Before you know it, you've got $30, $40 in fees ... for using your card."

There are also fees for going into a bank and getting money from a teller -- $2.50 -- and for calling to get an update on the balance -- $0.50. International transactions also carry a built-in fee of $1.50.

 

"You call to find out how much you have in your account," said one man. "They give you the number, then you go in the bank ... Because you have called more than one time to find out something, they charge you for it."

 

"There's just a fee for everything, and it shouldn't be that way for people trying to find work," said one woman. "They should be ashamed of themselves, charging somebody $1.25 when ain't nobody got a dollar as is."

 

Spehler was asked to leave when he went to a WorkOne office and inquired about debit card fees.

 

Marc Lotter, communications director for the Department of Workforce Development, said convenience is a key benefit of the card.

 

"People no longer have to wait for checks in the mail, take them to a bank ... or go to a check cashing place, pay higher fees that way," Lotter said. "Many people who file their unemployment get their benefit on their debit card the very next day."

 

Lotter said that if recipients simply use their transactions wisely, they can completely avoid fees.

 

"If you use it like every other debit card, there would be no extra fees," Lotter said.

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This page contains a single entry by Scott Bennett published on September 11, 2009 9:12 AM.

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