BILKing of AMERICA

[radfringe]

Jobless hit with bank fees on benefits
Unemployed workers outraged over charges to inquire on benefits
updated 6:23 p.m. ET, Thurs., Feb. 19, 2009
AP/MSNBC
http://www.msnbc.msn.com/id/29286993/

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.

---snip---

Neither banks nor credit card companies will say how much money they are making off the programs, or what proportion of the revenue comes from user versus merchant fees or interest. It's difficult to estimate the profits because they depend on how often recipients use their cards and where they use them.

But the potential is clear.

In Missouri, for instance, 94,883 people claimed unemployment benefits through debit cards from Central Bank. Analysts say a recipient uses a card an average of six to 10 times a month. If each cardholder makes three withdrawals at an out-of-network ATM, at a fee of $1.75, the bank would collect nearly $500,000. If half of the cardholders also call customer service three times in any given week, the bank's revenue would jump to more than $521,000. That would yield $6.3 million a year.

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is BoA now Bilking Of America?

nothing like kicking someone when they are down. And the "bilkers" wonder why they have a poor image....

[hobbit709]

1. And the ATM only lets you take out a max of $400/day

So if you need more than that to cover the rent, you're screwed. My wife found that out when she was on unemployment last year. Chase told her she needed to open a regular account with them so that she could write checks for larger amounts. She used several bad words in her reply and stated that she had a checking account at her credit union with no monthly fees, so why should she give them more money just to use HER money. When she got her current job, she took all but 33 cents out of that account and left it there just to make them spend money and computer time on the bookkeeping. Every now and then she swipes it at an ATM just to check her account balance-the 33 cents is still there.

[summer borealis]

2. This is bullshit

In EVERY case, fees can be avoided.

Nation of whiners indeed.

[hobbit709]

3. 50 cents to complain is BS

Don't complain or ask questions and you won't be charged fees-That's BS.