OT: paying to withdrawl?

[uki]

anyone else having these kinds of problems? talk about a banking scam...

excerpts...

First, Arthur Santa-Maria called Bank of America to ask how to check the balance of his new unemployment benefits debit card. The bank charged him 50 cents.

He chose not to complain. That would have cost another 50 cents.

So he took out some of the money and then decided to pull out the rest. But that made two withdrawals on the same day, and that was $1.50.

Thirty states have struck such deals with banks that include Citigroup Inc., Bank of America Corp., JP Morgan Chase and US Bancorp, an Associated Press review of the agreements found. All the programs carry fees, and in several states the unemployed have no choice but to use the debit cards. Some banks even charge overdraft fees of up to $20 — even though they could decline charges for more than what's on the card.

Some banks, depending on the agreement negotiated with each state, also make money on the interest they earn after the state deposits the money and before it's spent. The banks and credit card companies also get roughly 1 percent to 3 percent off the top of each transaction made with the cards.

"It's a racket. It's a scam," said Rachel Davis, a 38-year-old dental technician from St. Louis who was laid off in October. Davis was given a MasterCard issued through Central Bank of Jefferson City and recently paid $6 to make two $40 withdrawals.

Neither banks nor credit card companies will say how much money they are making off the programs, or what proportion of the revenue comes from user versus merchant fees or interest. It's difficult to estimate the profits because they depend on how often recipients use their cards and where they use them.

But the potential is clear.

In Missouri, for instance, 94,883 people claimed unemployment benefits through debit cards from Central Bank. Analysts say a recipient uses a card an average of six to 10 times a month. If each cardholder makes three withdrawals at an out-of-network ATM, at a fee of $1.75, the bank would collect nearly $500,000. If half of the cardholders also call customer service three times in any given week, the bank's revenue would jump to more than $521,000. That would yield $6.3 million a year.

so this i what they teach you in those fancy banking, accounting, and buisness schools, eh?

full article... http://www.msnbc.msn.com/id/29286993/

[MightyB]

ethics are gone. We truly live in a morally corrupt society.

One solution that we should demand that would clean a lot of this up is that we should go after a separation of business and state with the same zeal that we go after a separation of church and state. Kick the lobbyists out of Washington.

[David Jamieson]

ethics are gone. We truly live in a morally corrupt society.

One solution that we should demand that would clean a lot of this up is that we should go after a separation of business and state with the same zeal that we go after a separation of church and state. Kick the lobbyists out of Washington.

lol.

dude, if you completely deregulated business the corruption would be much worse.

It is not the businesses that are the problem.

It is the banks and the refusal to regulate them at a federal and state level that would ensure that the bankers don't become the captains of the ship.

the real power is wealth. who cares who the politicians are, if you control the money, you control the country.

i dunno about you, but i am not at all interested in living in a country that functions like a faceless corporation and deals with it's people in the same way. that's where the reforms are needed.

[MightyB]

lol.

dude, if you completely deregulated business the corruption would be much worse.

It is not the businesses that are the problem.

It is the banks and the refusal to regulate them at a federal and state level that would ensure that the bankers don't become the captains of the ship.

the real power is wealth. who cares who the politicians are, if you control the money, you control the country.

i dunno about you, but i am not at all interested in living in a country that functions like a faceless corporation and deals with it's people in the same way. that's where the reforms are needed.

Did you not read what I said?

The fact is you have to have regulations written without undue influence from business. If you don't think that corporate lobbyists are the problem- look up the behind the scenes info about the prescription drug bill. F%^^'n disgraceful. And that's just one example of a government that's hostile and irresponsible to it's populace in favor corporate profiteering.

[David Jamieson]

Did you not read what I said?

The fact is you have to have regulations written without undue influence from business. If you don't think that corporate lobbyists are the problem- look up the behind the scenes info about the prescription drug bill. F%^^'n disgraceful. And that's just one example of a government that's hostile and irresponsible to it's populace in favor corporate profiteering.

the problem isn't that there are lobbyists, it is that there are not enough grass roots lobbyists to counter those things that you are taking issue with.

The attitude of "let someone else take care of it" is what is the root problem in my opinion and it's not one group or another. THe active groups are DOING something and they are doing it to their own agenda.

If there was real offense taken to what's happening, then there would be a measure of real action taken, which there isn't which indicates apathy and if people don't care, then fuck em. That's how it works everywhere else in the world, so why not in america? You just expect people to do stuff for you gratis? nuh uh.

You want something done right, you really do have to do it yourself.

[1bad65]

It never ceases to amaze me how people get up in arms at banks for charging a few dollars for ATM fees and such, but think that giving away ~40% of your total income in taxes is fine.

Look at California, they take over 8% for state income taxes and this year they wrote out IOUs to people who overpaid! And I don't see people up in arms over that, or that on the front page of MSNBC.

[1bad65]

the problem isn't that there are lobbyists, it is that there are not enough grass roots lobbyists to counter those things that you are taking issue with.

It darn sure is lobbyists fault. Your just giving them a pass because Obama's Cabinet is full of them, despite his LIE that he would have no lobbyists in the Cabinet.

[sanjuro_ronin]

It never ceases to amaze me how people get up in arms at banks for charging a few dollars for ATM fees and such, but think that giving away ~40% of your total income in taxes is fine.

Look at California, they take over 8% for state income taxes and this year they wrote out IOUs to people who overpaid! And I don't see people up in arms over that, or that on the front page of MSNBC.

Don't even get me started on that wonderful PROVISIONAL tax know was INCOME TAX !!!

[1bad65]

Don't even get me started on that wonderful PROVISIONAL tax know was INCOME TAX !!!

I'm serious. If I take ONE of my bi-weekly checks and add up the amounts taken out by the government, it is more than my bank charges me in fees for the ENTIRE YEAR. Yet who do people get mad at, the banks or the government? It's ignorance on parade.

[SimonM]

ethics are gone. We truly live in a morally corrupt society.

One solution that we should demand that would clean a lot of this up is that we should go after a separation of business and state with the same zeal that we go after a separation of church and state. Kick the lobbyists out of Washington.

I say we just nationalize the banks myself.

But failing that getting rid of the lobbyists would be a good thing...

And modifying campaign fundraising laws to prevent large-scale corporate donations altogether, make a reasonable maximum cap on campaign contributions from private individuals.

And unlike some people I think income tax is necessary, a good idea, and not something that should be got rid of.

[sanjuro_ronin]

I'm serious. If I take ONE of my bi-weekly checks and add up the amounts taken out by the government, it is more than my bank charges me in fees for the ENTIRE YEAR. Yet who do people get mad at, the banks or the government? It's ignorance on parade.

Well, I don't pay bank fees, Lisa is a BA for the Royal Bank.
Nevertheless it never seems to amaze me how we go like lambs to the slaughter wehn we fork over 25% and UP of our hard earned money to the government for some PROVISIONARY tax measuer that was not suppose to be permanent !

[SimonM]

SR: Taxes go to the common good (in theory).

Bank fees simply line the pockets of bankers.

There is no comparisson.

[sanjuro_ronin]

SR: Taxes go to the common good (in theory).

Bank fees simply line the pockets of bankers.

There is no comparisson.

Banks employee many people?
They loan you money.
The government has people on their payroll that WE pay for and they TAKE our money.
yep, no comparison.

[1bad65]

I say we just nationalize the banks myself.

But failing that getting rid of the lobbyists would be a good thing...

Learn history before calling for nationalization. It always fails when compared to capitalism.

And modifying campaign fundraising laws to prevent large-scale corporate donations altogether, make a reasonable maximum cap on campaign contributions from private individuals.

We already did EXACTLY that with McCain-Feingold. So whats your point?

[1bad65]

Banks employee many people?
They loan you money.
The government has people on their payroll that WE pay for and they TAKE our money.
yep, no comparison.

Simon has bought into the class warfare rhetoric that American liberals preach. He ate it hook, line, and sinker.