We support reforms to the financial marketplace to curb bad practices by banks and lenders.
We hope more relief will come to people who are relying on unemployment benefits, especially those using unemployment debit cards. The U.S. Department of Labor has spoken…at least on unemployment insurance debit cards. The DOL guidelines lay out the following recommendations to states:
•Offer the option of directly deposit to existing bank accounts
•Make fee information easily available
•Allow for as many free ATM withdrawals per payment
•Make purchases free
•Make balance inquiries at ATMs free
•Get rid of overdraft charges, and reduce/eliminate denial fees
•Provide free customer service by phone
We’d like to add that dormancy or inactivity fees should be eliminated, as well monthly written statements should be provided for no fee or a low fee so that people can keep track of transactions.
In order for the many laid off Americans to benefit from the DOL’s guidelines, states need to renegotiate their contracts with the banks running these programs, banks like JP Morgan Chase, U.S. Bank and Bank of America. These negotiations need to happen quickly, as many Americans using these unemployment debit cards are often facing fees for trying to use the money, for things like going to the ATM too many times in one day, or for checking the balance too many times.
In some states, like Nebraska and Minnesota provide the ReliaCard run by U.S. Bank that has a $20 Overdraft Fee! Or if you have a bank account you’d like the funds transferred to, you’ll need to pay $2.50 to move the money over for Missouri Access recipients.
If you have an unemployment debit card how, we have some tips.
Bank of America has taken over $200.00 of over draft fees from my debit card. I made a trip to the local Bank of America for two $35.00 fees that they had deducted from my unemployment debit card and they found no error to have take my money so they credit these two fees back to my account. The following week the same error happened again. I went again and they told me that they could not credit me again because the prior week they had credit me two over draft fees and the system would not let them credit again. Im struggling enough financially and for them to continue these so called over draft fees, has left me short on my finances to pay my bills.
My US BANK reliacard just charged me $17.00 for an overdraft fee. My account went over 2 cents!!! I only get 147.00 per wk for unemployment, I used my card at a local store, and the purchese I made 2 days before for gas, was added AFTER my trip to the store, thus causing me to go over 2 cents! I’m going to call them in the morning, but don’t expect them to reverse it. I realize that overdrafting can cost a bank…but, cmon…it’s 2 cents!