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Pulling back the curtains on wage-theft enforcement in MN; Trump's latest attack is on RFK, Jr; NM LGBTQ+ equality group endorses 2024 'Rock Star' candidates; Michigan's youth justice reforms: Expanded diversion, no fees.

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Transportation Secretary Pete Buttigieg says rebuilding Baltimore's Key Bridge will be challenging and expensive. An Alabama Democrat flips a state legislature seat and former Connecticut senator Joe Lieberman dies at 82.

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Historic wildfires could create housing and health issues for rural Texans, a Kentucky program helps prison parolees start a new life, and descendants of Nicodemus, Kansas celebrate the Black settlers who journeyed across the 1870s plains seeking self-governance.

Beware of "Fee Factor" in Jobless Benefit Debit Cards

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Friday, January 21, 2011   

SPRINGFIELD, Ill. - People who are out of work in Illinois and around the nation can collect unemployment benefits in a variety of ways: by check, automatic deposit and, in 30 states, by prepaid debit card. They may not realize, however, that while the debit cards are convenient, they may carry hidden fees. For example, in some states, the cards carry overdraft fees of up to $20.

Lauren Saunders, managing attorney for the National Consumer Law Center, says Illinois unemployment debit cards do not charge overdraft fees, but there are other costs Illinois consumers should consider.

"There's a $.95 ATM fee, even in-network. There's a $1.25 fee for using calls to live customer service, after the first one."

Consumers can avoid those costs, Saunders adds.

"They certainly should be able to have that money directly deposited into a traditional bank account as their first option."

Saunders agrees that prepaid debit cards for unemployment insurance can be convenient for consumers, and they save states money.

"The prepaid card issuers go to the states, and say 'We can take all of these costs out of your hands and we'll pay the money out for free. How does that sound to you?'"

But while people can get access to their money quicker, Saunders reminds consumers to use the cards wisely.

"The fees can nickle-and-dime you. People need to be aware of them."

The Labor Department has offered guidelines to banks that may be reviewing policies in the wake of new financial reform laws. The department suggests that banks eliminate overdraft charges, allow for more than one free ATM withdrawal and eliminate fees when cards are used to make purchases.

In the meantime, Sens. Durbin and Menendez from New Jersey are pushing for more consumer protections on prepaid cards.




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