Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Consumer
Watch for fees on unemployment benefits
NEW YORK (9/30/09)--Thirty-one states have issued prepaid debit cards to reduce their costs to print and mail unemployment checks. While this helps cash-strapped states save money, consumers may end up paying fees on their use (SmartMoney.com Sept. 4). Prepaid cards typically benefit the state, not the consumer. The state doesn’t pay a fee to the banks issuing the card, and can save millions on printing and postage. The banks get paid by the retailer when the consumer uses the card to make a purchase--in addition to any fees paid by the consumer. Federal rules allow at least one free ATM withdrawal per benefit payment, but you may get charged up to $1.50 per transaction after that. Some states charge for an automatic transfer to your bank account. If your transaction is declined because of nonsufficient funds, you also may be charged a fee. It’s typically free to check a balance online, but you may pay if you check it at an ATM. The best way to avoid misusing your unemployment earnings is to know what the rules and options are in your state. Direct deposit is usually a better option because of fewer or no fees. When filing for unemployment, be sure to ask about payment methods and get a copy of the fee schedule before you sign up for a prepaid debit card. For more information, see “Tough Times Series: Steps Before, During Layoff Make It Easier to Cope” in Home & Family Finance Resource Center.
Other Resources

RSS





print
News Now LiveWire
What role are #creditunions playing in @gatesfoundation's 2030 vision of financial services? Read #NewsNow Monday
11 hours ago
Consumers fear inaccurate info lingers on credit reports, says @FTC study Read @CUNA's News Now: http://t.co/RzNLMnaROO
13 hours ago
@PCUA has formed a @LinkedIn networking group for former bankers turned #creditunion employees.
13 hours ago
.@politico reports Democrats haven't picked the city yet, but their 2016 convention will be held the week of July 25.
13 hours ago
.@cuna, @DCUC_HQ urge @CFPB to exempt #CUs from changes to Military Lending Act rules cuz CUs aren't part of the targeted problem. NN Monday
15 hours ago
150x172_Sign up for election newsUnite for Good Share your Stories100 Million CU Memberships