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SmartCredit.com Consumer Education President John Ulzheimer on the fees charged to receive unemployment benefits through prepaid debit cards.
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Okay this is a critical new report you need to hear about -- shedding light on the way states are literally bilking.
Unemployed Americans by forcing them to pay fees.
-- doing my next guest says is saving a few bucks for government while raiding the benefits for the rest of us.
Joining me -- John Alzheimer president of consumer education for Smart credit dot com.
John you and I have been down the road on this topic and new details today about this.
Debit cards now being used by the government to deliver benefits.
And what is the sneaky thing that happens to these folks.
Yeah unfortunately this is not the road less traveled does that -- These are the folks who need it the most right 88 it's the folks are dependent on unemployment benefits to survive and what are we down with the spread -- out of prepaid data -- so we can start charging in these little fees here he -- -- types of things.
And Whittle away at frankly their lifeline.
Yeah.
Do you think they'll -- by government this money is collected by the banks.
Remember the exact right -- the banks we bailed out remember that.
This -- on the right hand side air pocket.
But that's right and trust we don't know where these banks -- -- out like they're trying to get Rolling Stones tickets man may want to be first on line.
-- dead on on facilitating this process because they make serious box and look it's the big banks -- -- core doing -- And right it's troubling to how much -- is.
-- now it's it's in the hundreds of millions of dollars is and what's happening and that that's pitched.
That they're giving the states is -- you're spending millions of dollars every single year.
Printing checks and -- TDs consumers every single month.
Let us take care of it let's put the funds on top of a prepaid debit card there is no printing costs you're gonna say -- -- dollars which is actually true.
The problem as is once again and the consumers the one his left but in the bell.
And the bill on this case -- these animal feed the inactivity fees the ATM fees calling -- customer service agent and asking about your balance costs you to box.
So and we're talking about -- and dining and yet again the banks have found a way into tax -- pockets.
To raid.
Finds that should go to people who are unemployed.
You know -- also.
Should go to people who -- on Social Security people who get other benefits end up paying these fees as well.
Yet Social Security don't let me count the ways right what does that -- inhabited a -- I -- you let me count the -- So we have rebates rebates are not given on prepaid debit cards we have tax refunds are not given -- prepaid debit cards.
We have unemployment benefits are given on prepaid -- card if you listen to the -- industry they want to put sure.
Paycheck.
On a prepaid debit card have -- done that yet Jerry it's just there's no the waiter -- outlasts.
How they're causing that that these these cards are kind of -- -- way it's almost everything else how that's beyond the -- get money in these these debit cards are.
-- out but it's supposed to take the place.
A bank checking account and then write a good idea why.
But like 88.
It's not a good idea and it's simple -- I mean I have this discussion about my five year old all the time is this number greater than zero are not.
And a prepaid -- if she doesn't seem to get that simple math will always rule.
Having it well managed checking account with a bank or credit eating cost you grand sum total 10 -- -- months.
After you get this -- -- finance lawyer that -- it's very hard to do you have to shop around because.
Bank of America had the big banks here they charge you six dollars eight dollar British give money out and out every month he got federal credit union getting pretty quick prayer union -- a local -- -- -- those good deals right.
That's right Derek -- 101000.
Credit unions in this country.
And I can't find one that has a monthly fee on -- checking account and there are.
Hundreds and hundreds of local small regional mom and pop banks that have -- -- fury ATM networks I understand that but also don't charge you.
Monthly -- -- on your checking account and and -- you don't have to have direct deposit that's a huge math.
I had very I had -- -- I didn't -- I've got three checking accounts.
And I paid nothing for every single -- further -- there's -- -- -- how I want to show our viewers here.
Because there are five states where you have to take your unemployment -- by direct deposit.
-- I'm -- direct deposit is not available you have to -- get a nice ridiculous debit cards and it -- California Nevada Kansas Indiana Maryland.
The all time you don't even have the option.
Don't even have the option have to pay the fees how -- -- this.
It's not and guess it is licking their chops right now and it is into the banks gas pedal the fraud stirs.
These aren't helped to facilitate fraud out of Canada I -- one of these things out of your mailbox area -- it swiped it I don't have to show -- -- it.
And I don't have to enter a panic by -- -- -- -- at the credit card.
At the check out terminal these cards helped to facilitate tax fraud unemployment fraud and Social Security -- right.
Let me pleads please direct deposit.
Didn't check direct deposit whether it's Social Security it's unemployment you're getting a tax refund this year.
Make sure you take it directly.
To the even get all of your money.
Who wants Uncle Sam to have more of your money than Uncle Sam should that's what I say what do you say John.
I -- I love it and their argument has always that -- -- it's cheaper than going to check cashing store.
That's -- out how to -- why are broken bone is better than two broken down I get the comparison that's a very cherry picked example.
How about zero dollars is better than anything greater than zero and I love no fees no fees as my -- I love it tapes -- on the C.
Perhaps sons -- -- thanks for coming now is good to see you thanks for your help tonight.
Thanks --
