Thursday, February 17, 2011

Running Out of Benefits....

If you collect unemployment benefits, the rules have changed! And guess what, It's not in your favor!

In the past when states issued unemployment benefits, you received a paper check in the mail, or the funds were deposited directly into your bank account. But now roughly 30 states issue unemployment benefits on prepaid debit cards.

At first glance, this might seem like a great deal. The states save money by not mailing you a paper check. You receive benefits quicker since funds are deposited onto the card.

However, services that are typically free for debit card users (i.e. store purchases, confirming account balances by phone or having a transaction denied) can also cost extra fees. You are charged a fee for withdrawing money from an "out of network" ATM machine. You may be charged for every withdrawal after the first one -- up to $5 per withdrawal in some states. You may even be charged a transaction fee for using the card at a store.

*My "ALL" of the fine print. If not, you'll be out of benefits faster than you know it.*

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