Great Info Tips

A very interesting article in the local newspaper made me realized even the unemployed are vulnerable to the rip off of their money. You have the right to elect direct deposit into your checking account or to get a debit card for the money you have coming to you when unemployed. This debit card is the rip off. This is in the state of Pennsylvania, but if you get laid off you might want to check your own state to see if this is the route the unemployment offices are taking.

Here you must use only two banks: Wachovia or PNC. Go elsewhere to take money out of the debit card and you will pay the $1.50 ATM fee. You are allowed 1 free withdrawal during the month on this debit card. If you transfer the money deposited in the debit card to your regular checking account at your own bank there is another $1.50 fee for each time you transfer money. You will pay 40 cents to check the balance on the debit card, 50 cents if the card is denied at any store where you are using it (after 1 freebie). If you lose the card it will be replaced free, but if you lose it a second time there will be a fee between $4 and $12. If you are lucky enough to get a job and forget to use the remaining funds still in the debit card account you will be charged $1 per month for NOT using the card.

To me this sounds very much like a giant rip off. People on unemployment are trying to watch their spending, counting each and every dollar they get. So why would they want to have to pay extra? According to the article I read, 54% of Pennsylvanians have direct deposit. I can’t see why the rest are using this debit card. The state pays the debit card contractor (who shall remain unknown here) nothing. The fees are the pay this company gets along with money from the stores that accept the debit cards. So, is this really a small price to pay for the “advantage” of having a debit card for unemployment? I’ll let you decide.