Comments on: The unemployment debit-card scandal

By: Moopheus

Moopheus — Wed, 16 Nov 2011 14:34:28 +0000

Knibblet–Felix doesn’t like payment systems that don’t generate fees for banks.

By: knibblet

knibblet — Tue, 15 Nov 2011 19:37:27 +0000

The United States Postal Service handles more mail in 1 day than most other countries postal systems handle in a year.
Just because the public developed the lie of “the check’s in the mail” to dodge bill collectors, don’t knock the postal service.

By: knibblet

knibblet — Tue, 15 Nov 2011 19:37:24 +0000

By: majkmushrm

majkmushrm — Tue, 15 Nov 2011 18:52:42 +0000

Thanx Felix, I had no idea. It’s pretty bad when a state can’t dictate terms to a bank.

By: NCimon

NCimon — Tue, 15 Nov 2011 18:22:56 +0000

Felix, thank you very much for highlighting this issue. Here in Oregon, the state’s largest newspaper – and news source – ran an editorial a few weeks back, pushing for the state Treasurer to fight for better terms. There’s also a push for real competition in the marketplace for those cards:

http://www.oregonlive.com/opinion/index. ssf/2011/11/a_check_on_oregons_cards.htm l

By: KenG_CA

KenG_CA — Tue, 15 Nov 2011 05:47:50 +0000

This is just more of the outsourcing-is-cheaper fairy tale that businesses have sold to governments. California also requires that all tax payments over a certain amount be done electronically; this requires that you grant certain rights to access your bank account to the state. The other options are to pay by credit card, which carries a 2.5% (or is it 3.4%?) fee to the bank, and if you pay by check, a 1% penalty (I have chosen the check + penalty route, I would rather give 1% to the state than 3% to a bank for just processing a payment).

See, it’s not just at the federal level that government serves banks, it’s like that at the state level, too.

By: Frwip

Frwip — Tue, 15 Nov 2011 02:36:25 +0000

And when I think about it, this story about direct deposit is plain BS.

California already has the infrastructure to manage direct deposit, thanks to its Franchise Tax Board.

If California can handle direct deposit for tax refunds, it can work just the same for unemployment benefits.

By: Frwip

Frwip — Tue, 15 Nov 2011 02:31:08 +0000

I had no idea that direct deposit was not an option in California.

In that case, there are every reason to believe that banks are not just buttering the states but also state employees and elected officials. I know that local governments are not exactly havens of efficiency and common sense, especially in my Left Coast home state. But THAT is just too good to be sheer happenstance.

Don’t call the Consumer Financial Protection Bureau. Ping the other Bureau, the FBI.

By: mfw13

mfw13 — Tue, 15 Nov 2011 00:21:49 +0000

Gees…state governments and big banks in an incestuous relationship…what a suprise.

By: KidDynamite

KidDynamite — Mon, 14 Nov 2011 23:44:51 +0000

I read that piece with the quote from SC’s Ms. Gortman last week and had one question that I wonder if you can answer, Felix: does Ms. Gortman have any other option to receive her benefits – or does the State force her to get them on a debit card?

From the article, it sounded like it was possible to get the benefits in other ways, although she was “encouraged” to go the debit card route.

By: BobBobb

BobBobb — Mon, 14 Nov 2011 23:30:37 +0000

I love paper checks, and I can’t stand direct deposit or these unemployment debit cards. Big banks just won’t learn. Best thing that can be done is for everybody to pull their money out of ‘em, and go with a small local bank or credit union.