Another reality twist by media. As much as I am sympathetic with those who lost their jobs, I feel that outrage is totally misdirected. They are allowed for one free withdrawal per pay period. Therefore, they can avoid charges by taking advantage of that free withdrawal and put that money into their bank account. This would be no different than receiving a check, except faster. No advance notices about fees is bad, but if you read the agreement before going on a spending rampage (as you should), then fees can be avoided. And if you need extra services on that state debit card, be prepared to pay for them. As a taxpayer, I am not prepared to foot those extra charges, sorry.

I am currently collecting unemployment in PA. Anyone upset over debit card fees, has only to take 5 minutes out of their day to set up direct deposit of their benefits into a bank account of their choosing. I have mine directly deposited into my Wachovia account and I have ZERO fees. This should be a non-story because it’s easy to avoid having to use the card at all. Payments are in my wachovia account only 2 to 3 days after filing.

Anyone currently accepting benefits in PA can easily go to the PA state unemployment website and set up direct deposit in less than 10 minutes, without even leaving their home. This Outrage is unfounded. This is a NON-story.

Mr. Lippe - Please remove your head from your butt. I am sorry you lost your job, it must be scary in this current meltdown. Nonetheless there are methods to minimize your costs using this unemployment program. You might feel as if you have been kicked while you are down on the floor but realize that you are receiving benifits all the same. Pick yourself up, move on the best you can and honestly work towards a better future. What else can a person do? Good luck.

I think you are missing the point. The outrage isn't necessarily at the fees themselves, but that the fees are being collected by banks that are also getting TARP funds.

As taxpayers, we are giving the banks TARP money AND we are giving them money in the form of fees from the unemployment fund that is supported by the tax paying workers.

That kind of double-dipping is a bit much. We're already bailing them out from their own mismanagement and this is how they thank us? It's just crass and a bad PR situation all around.

If the banks need more money they should do the unemployment cards for free and raise the fees on regular accounts. Everyone involved in this financial mess fails to consider how this looks from the outside. Even if there are other options (like direct deposit) and the fees are spelled out, it still LOOKS BAD and that is really what the banks should be concerned about right now.

Where the unemployment dollars came from, Rich?

The unemployment dollars came, in great part, out of his pay check every week while he was working. Now that he is unemployed you would begrudge him the benefits that he was forced to pay for?

I have always been of the opinion that unemployment insurance should be VOLUNTARY. There are no functional issues here since if, say 50% of the people opt to stay in, then only 50% would be eligible to receive benefits. If you resent paying for it, then you should be free ( remember that word?) to opt out. Of course you would be opting out of the your benefits as well, which would be fine with me.

What burns me is people who treat those receiving unemployment payments as if they are welfare bums, milking the system. In order to be eligible to receive unemployment, you had to have paid into it for at least 6 months. Most have had their pay checks partially confiscated by unemployment insurance for years. Now that they need to collect a little back, you say they have no right to complain?

chucka - Thank you for a rational, first-hand opinion about dealing with the unemployment system.
I work for a bank that issues the EPPI card (UI, TANF, etc) for Virginia, and you're all very mistaken on several key points. First off, this has literally *nothing* to do with the TARP program - these debit cards have been in effect for several years now in some states, since 2006 in VA. Second, every person who recieves a card gets an easily comprehendable list of what transactions are free. Unless, of course, you consider fourth-grade reading level and size 14 bold font to be "fine print"...
And lastly: "Fees should not be attached to unemployment benefits that the taxpayers are paying to help Americans..." What ever happened to pure, unadulterated gratidute? If I ever become unemployed, I'll at least be thankful that there is a system in place to help in my time of need (or, you know, have the foresight to set money aside in savings).
Moral of the story is, you have a choice: get off your ass and open a free bank account like a responsible adult, or take the easy way out and pay for it.

kirkmcquest - I don't know about your state, but here in PA your unemployment payment is NOT funded mostly by employee deductions. It is funded mostly by employer payments.

I pay about $1 a week into the fund and would be eligible to collect hundreds of dollars a week in benefits. Virtually all of that money would come from my employer since I have only contributed about $50/year to the fund. Nobody would contribute to a voluntary fund since it would be prohibitively expensive. Do you have any idea how much you would have to save to be able to replace even 50% of your salary for 6 months? It's A LOT more than the $1/week they deduct.