Wall Street banks seize opportunity to profit from nation's unemployed
(Source: Common Dreams, January 29, 2013)
'Too Big to Fail' banks including JP Morgan Chase, U.S. Bancorp and Bank of America have seized on an opportunity to profit off the nation's jobless by siphoning millions of dollars in fees from state unemployment programs, according to a new report by the National Consumer Law Center.
Privatizing the task of distributing unemployment benefits, the banks have created a "fee-heavy" check card system. Instead of having payments deposited directly to bank accounts or recieving checks sent in the mail from their state governments, individuals across the nation are increasingly forced to use costly bank issued payment cards that are loaded with a "plethora" of costly fees for the recipient.
The large banks pitched the operation to states as a scheme that would "save millions in overhead costs" but have instead externalized such costs to America's jobless.
Full story: Common Dreams
Thursday, January 31, 2013