AP IMPACT: Jobless hit with bank fees on benefits

[EV_Ares]

AP – Recently unemployed engineer Arthur Santa-Maria poses for a photo Saturday, Feb. 7, 2009 at a Bank of … First, Arthur Santa-Maria called Bank of America to ask how to check the balance of his new unemployment benefits debit card. The bank charged him 50 cents.

He chose not to complain. That would have cost another 50 cents.

So he took out some of the money and then decided to pull out the rest. But that made two withdrawals on the same day, and that was $1.50.

For hundreds of thousands of workers losing their jobs during the recession, there's a new twist to their financial pain: Even when they're collecting unemployment benefits, they're paying the bank just to get the money — or even to call customer service to complain about it.

Thirty states have struck such deals with banks that include Citigroup Inc., Bank of America Corp., JP Morgan Chase and US Bancorp, an Associated Press review of the agreements found. All the programs carry fees, and in several states the unemployed have no choice but to use the debit cards. Some banks even charge overdraft fees of up to $20 — even though they could decline charges for more than what's on the card.

"They're trying to use my money to make money," said Santa-Maria, a laid-off engineer who lives just outside Albuquerque, N.M. "I just see banks trying to make that 50 cents or a buck and a half when I should be given the service for free."

entire article @ link: http://news.yahoo.com/s/ap/20090219/ap_on_bi_ge/bank_fees_jobless_benefits

[David Dunham]

1. Wierd

[hobbit709]

2. Last year when my wife was unemployed for 6 months

She got her money through Chase. 2 out of every 3 times when she went to the nearest Chase ATM it was either out of money or not working. When she went inside the bank they tried to give her shit about the fact that she didn't have a real account with them. Then they had the nerve to tell her if she opened a checking account with them the problems would be solved. I won't repeat what she said. When she started working again, she cleaned all but 33 cents out of that card and left it in there. You know it's costing them more than that to keep the account open. Every few months she swipes the card at an ATM to check the balance.

[marmar]

3. To say the big banks suck would be akin to saying George W. Bush was a bad president.....

...... Way too understated.

[rpannier]

4. Thomas Jefferson once said

"Banking Establishments are more dangerous than standing armies."

[littlebit]

5. Wachovia charges my girlfriend if

she goes to the ATM more than twice a week.