Showing posts with label Debit Cards. Show all posts
Showing posts with label Debit Cards. Show all posts

Saturday, May 23, 2015

Nanny State Kansas Republicans limit Debit Card withdrawals on Poor.

I see, Republicans aren't punishing the poor, they're just trying to help.

Funny thing, you never see Republicans pushing for more accountability and results from CEO's and big business interests seeking tax cuts and state handouts. In fact just the opposite if they're getting money from Scott Walker's WEDC.

Pee in a cup drug tests, limits on the kind of food served while wining and dining corporate lobbyist and politicians for taxpayer money?

I'm mystified. Heck, we've already discovered companies are not the "job creators" they said they were, especially here in Wisconsin.

But republicans have a way of spreading their one-size-fits-all nanny state punishments on the poor, as you'll see below in another cruel hot new attack.

So if drug testing, public service work or nanny state junk food lists aren't enough to dump on struggling Americans, how about the following:
AP: People are outraged about a Kansas law that critics are calling a 'tax on the poor.' Kansas is taking a storm of criticism over its new policy strictly limiting ATM withdrawals for welfare recipients to $25 a day. Additionally, most ATMs do not carry $5 bills. This fact effectively changes the policy to a $20 limit and would potentially result in poor Kansans paying even more withdrawal fees to get the same amount of money.

The change was placed in stark reality by a Thursday article in The Washington Post titled "Kansas has found the ultimate way to punish the poor." As The Post notes, it would "force beneficiaries to make more frequent trips to the ATM to withdraw money … Since there's a fee for every withdrawal, the limit means that some families will get substantially less money." Elizabeth Lower-Basch, the director at Center for Law and Social Policy, or CLASP, said the law amounts to a "tax on the poor."
But it saves the state money, all the while teaching lazy no good American citizens a lesson in frugality:
Experts have suggested the welfare policy change could result in a $100 million cut in money Kansas receives from the federal government … the Social Security Act requires welfare recipients to "have adequate access to their cash assistance" while facing "minimal fees or charges."

Though Brownback and legislative leaders are quickly backpedaling in the face of the potential loss of federal funds, various observers have widely expressed outrage … People who read The Post article reacted with comments like "disturbing," "amazing," and expletives: Some of the state's leading editorial boards have previously blasted the ATM limit.

"Not only are many of the state’s new welfare regulations condescending, the limit on cash withdrawals may violate federal law — potentially endangering $102 million in federal funding. That’s what can happen when lawmakers ram through legislation without proper vetting, and based on ugly stereotypes," The Wichita Eagle opined Wednesday. "The best course is to revoke the entire law."

The Kansas City Star slammed the legislation on Monday as an "embarrassment" to the state. "If nothing else, Brownback’s staff should have observed that ATMs generally don’t allow withdrawals in $5 increments. The state law effectively imposes a $20 limit," the paper's editorial board wrote. "That rushed process, the sign of amateurs at work, has been happening a lot lately in Topeka. And — voila! — the result is bad legislation."
What's encouraging is that we're seeing any kind of blowback at all. 

Friday, September 30, 2011

The Big Bank Temper Tantrum: A $5 Debit Charge per Month for Customers. That’ll fix ‘em.

Arrogance on top of giant CEO bonuses, bankers couldn’t wait to get back at retailers and consumers.

Charging Americans the fee is a jobs killer, especially during these tough economic times. Where's the outrage?

It’s time to dump the banks, NOW, for credit unions!
NYTimesBank of America, the nation’s biggest bank, said that it planned to start charging customers a $5 monthly fee when they used their debit cards for purchases. It was just one of several new charges expected to hit consumers as new regulations crimp banks’ profits. Wells Fargo and Chase are testing $3 monthly debit card fees. Regions Financial in Birmingham, Ala., plans to start charging a $4 fee next month, while SunTrust, another regional powerhouse, is charging a $5 fee.

The round of new charges stems from a rule, which takes effect on Saturday, that limits the fees that banks can levy on merchants every time a consumer uses a debit card to make a purchase. Until now, the fees have been 44 cents a transaction, on average. The Federal Reserve in June agreed to cut the fees to a maximum of about 24 cents. The new limit is expected to cost the banks about $6.6 billion in revenue a year, beginning in 2012 … That comes on top of another loss, of $5.6 billion, from new rules restricting overdraft fees, which went into effect in July 2010.

The losses represent consumer abuse and profiteering, not actual labor costs incurred by banks. Credit unions don't charge a fee. At least not yet.