Cognitive Dissonance

"Democracy! Bah! When I hear that I reach for my feather boa!" - Allen Ginsberg

485 notes

For these largely hourly workers, paper paychecks and even direct deposit have been replaced by prepaid cards issued by their employers. Employees can use these cards, which work like debit cards, at an A.T.M. to withdraw their pay.

But in the overwhelming majority of cases, using the card involves a fee. And those fees can quickly add up: one provider, for example, charges $1.75 to make a withdrawal from most A.T.M.’s, $2.95 for a paper statement and $6 to replace a card. Some users even have to pay $7 inactivity fees for not using their cards.

These fees can take such a big bite out of paychecks that some employees end up making less than the minimum wage once the charges are taken into account, according to interviews with consumer lawyers, employees, and state and federal regulators.

The New York Times, "Paid via Card, Workers Feel Sting of Fees" | June 30, 2013

Colleges are doing this as well with financial aid and veteran’s benefits refunds. I wasn’t taxed by the U.S. government on my education benefits, but Higher One sure took a chunk with all their fees.

Filed under Politics Economy poverty banks banksters Wall Street war on the poor

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