Consumer Law

CNN Report on Debit Card Fees for Those Receiving Unemployment Benefits

By Jeff Sovern

by Jeff Sovern

The unemployed who receive benefits in the form of debit cards often pay fees for the privilege, according to a CNN report.  An excerpt:

The National Consumer Law Center says fees range from 40 cents to a high of $3 per transaction, if the debit card is used at an out-of-network ATM. Most banks give jobless debit card users one free withdrawal per deposit period, which averages every other week in most states. But consumer advocates, including the Law Center, say the unemployed "should be able to obtain cash and perform basic functions with no fees."

Hat tip to Kristie Kline.  But here's my question: if the debit card service costs the banks money (and I have no idea if it does), who should pay for that?

Full post as published by CL&P Blog on March 16, 2009 (boomark / email).