WASHINGTON -- Many states shortchange the jobless by distributing unemployment benefits on debit cards loaded with obnoxious fees, according to a new study by the National Consumer Law Center.
Of the 40 states that have switched from paper checks to prepaid debit cards, 22 states' cards charge ATM fees, 24 charge balance inquiry fees, and 28 charge inactivity fees. The cards in Arkansas, Idaho, Nebraska, Ohio, and Oregon come with overdraft fees ranging from $10 to $20.
And in Connecticut, Iowa, Rhode Island, and Tennessee, cardholders "must pay for every ATM inquiry or pay a denied transaction fee if they request cash when their balance is insufficient," the study says.
Tennessee is found to be the worst offender. When asked for a comment, a representative for the Tennessee Department of Workforce Development said he didn't think that statement was fair. However, he failed to explain how the charges and stupidity of this program is fair for the people who need help the most. After vague references to this "probably" being less expensive than cashing a paper check, there was nothing else to say. Except, you know, neener neener we'll get you no matter what.
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