Government gives prepaid debit cards for benefits, consumers get slapped with fees
More than 40 state governments now have contracts with banks to give unemployment benefits on pre-paid debit cards. Banks are cashing in on the game with fees.
Governments have distributed some $53 billion in unemployment benefits and child support payments via prepaid debit cards. Those cards are exempt from new consumer protection rules, and banks are cashing in. Some users are charged for any ATM usage, others for checking their balances and some for not using the cards enough. Suzanne Martindale of the Consumer Union explains how the fees work.
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