Jobless hit with bank fees on benefits (AP/Yahoo)

[eppur_se_muova]

By CHRISTOPHER LEONARD, AP Business Writer Christopher Leonard, Ap Business Writer – Fri Feb 20, 2:40 pm ET

For hundreds of thousands of workers losing their jobs during the recession, there's a new twist to their financial pain: Even as they're collecting unemployment benefits, they're paying bank fees just to get access to their money.

Thirty states have struck such deals with banks that include Citigroup Inc., Bank of America Corp., JPMorgan Chase and US Bancorp, an Associated Press review of the agreements found. All the programs carry fees, and in several states the unemployed have no choice but to use the debit cards. Some banks even charge overdraft fees of up to $20 — even though they could decline charges for more than what's on the card.

"It's a racket. It's a scam," said Rachel Davis, a 38-year-old dental technician from St. Louis who was laid off in October. Davis was given a MasterCard issued through Central Bank of Jefferson City and recently paid $6 to make two $40 withdrawals.

The banks say their programs offer convenience. They also provide at least one way to tap the money at no charge, such as using a single free withdrawal to get all the cash at once from a bank teller. But the banks benefit from human nature, as people end up treating the cards like all the other plastic in their wallets.

The fees are raising questions from lawmakers who just recently voted to infuse banks with taxpayer money to keep them afloat.
***
more: http://news.yahoo.com/s/ap/20090220/ap_on_bi_ge/bank_fees_jobless_benefits

[tbyg52]

1. It's the corporations, stupid!

(I keep trying to get that meme taken up.... ;) )