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SmartCredit.com Consumer Education President John Ulzheimer on the costs to consumers from the IRS issuing tax refunds on prepaid debit cards.
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Well if you're expecting an income tax refund this year you could end up paying.
For access to that money that's right paying.
Just to get your own money here to explain John Alzheimer president and consumer education.
-- credit dot com okay John how was the spots.
Well.
You mean you don't like the idea of having to pay no melody to get access to your tax he thought I was shocked -- you Jerry.
But here's the deal if you don't make it crystal clear that you watcher either fat troll possibly -- -- your state refund either via chat Paper tac or direct deposit to an existing savings or checking account.
Then you're likely gonna get it on yes the most vile piece of plastic issued by financial institutions -- prepaid debit card which saves the government.
Gobs and gobs of money because it'll have to print checks but it ends up coming out of your pocket.
Under attack on John John my -- and mining let me tell you -- me an idea of some of these fees so Turbotax.
They're charging 595 and a monthly maintenance fee if you have less than fifteen bucks on the card.
You have a withdraw -- charge of two dollars and fifty cents after that first free ATM withdrawal.
You've got to be kidding me this is -- money I paid my taxes now why do I have to pay for my refund that's just not fair.
Now honey we can go on and on what the fees associated a Democrat -- the site we don't have fifteen minutes to go through every single level -- you're gonna pay you out of -- this.
This underscores something that -- home.
That these cards have right now shocks me it absolutely shocks me so many celebrities are starting to -- -- and getting the business of being part of prepaid debit card.
And now you have not only state also federal governments that are pushing these things and we know a -- they're doing -- -- -- to save themselves money.
Even have some folks are getting Social Security benefits on these things so.
That momentum is -- if you're not Cliburn -- to get the heck out of the -- you -- -- probable one of these bad boys.
And -- gonna be paying monthly -- and ATM -- and that's that the other -- just to get access to your own money.
95 cents.
I don't know about you but I I find this outrageous and you can see you this is benefiting it's not benefiting the taxpayer.
It's benefiting the companies they're putting these cards in the marketplace we find this over and over again John I wanna know how can I avoid this this look I've talked to people.
Who have gotten back refunds -- didn't realize that they were getting in on one of these cards they didn't want one of these cards how do you -- -- Yet you're using a tax prep company that make sure that you missed you so lax.
-- -- electronic funds transferring.
Into a bank account.
For an actual Paper checks don't -- then she's on your behalf of their currencies the option that's the most beneficial to -- them.
Which and obviously is gonna be to prepaid debit card.
This underscores a much bigger problem.
Yet a segment of the population in this country -- got to get a tax refunds you donate a dollar forty gotten one day we'll be getting one sometime this year and they hate banks that -- think that they should avoid banks because people telling the banks are people and because of that they have -- less advantageous and more costly options just amid money from point a to point B.
And look guess what's even a better option -- -- of these prepaid debit cards like you believe I'm gonna say that's.
They check cashing -- that's on the the corner but also that's -- Tattooing is it because at least I do understand what the fee as it's a one time -- you understand what it's going to be with these prepaid debit cards.
These fees are ongoing you just don't have any clue how long it's gonna take readings -- the value of the -- get a bank account and get it direct the the positive into the bank account how we can stop having this.
Terrible discussion about -- A debit card bank account and can be a member of a credit union there's lots of ways to do -- you can't avoid the bank fees if you want -- It's absolutely possible -- always great to have you on the show thanks for helping us out tonight we appreciate it.
