May 24, 2012
KNOXVILLE, Tenn. (WVLT) -- Some in East Tennessee are concerned about the fees that can go along with the unemployment debit card.
If you're unemployed, every penny is important to get by each month, but there are fees and charges you could face with the new Tennessee unemployment debit cards.
And, that doesn't sit well with one Knox County man.
Unemployed for more than 2 years, and keeping track of every dime from the $250 he gets a week in unemployment, Gerald Bingham said, "I got an 11 year old daughter, and I've got to tell her she can't have stuff, and that hurts."
Gerald says he is now a house-husband, but keeps searching every week for a job. "For somebody that's drove trucks and worked in warehouses their whole life, there is nothing out there," said Bingham.
But now, he is worried his fellow-unemployed will actually lose out on some of their benefits. "That debit card thing, nah ah, that's going to make a lot of people mad," said Bingham.
The Tennessee Department of Labor and Workforce Development is now offering direct deposit and debit cards to the newly unemployed, but there are several ways you can get hit with fees if you choose the debit card, called a Tennessee Automated Payment (TAP) card.
Bingham said, "Because Chase, Manhattan bank, is in charge of the debit cards and they're making a killing but people are going to get tired of it."
Chase Bank provides the cards for the state unemployment program, and there are ATM withdrawal fees, balance inquiry fees, and purchase fees.
Bingham said, "Once you get the fees and everything, you're broke in a week."
That possibility is why Gerald is going with the direct deposit option.
But, there are ways you can avoid the fees with the debit card. When you use it to make a purchase, choose credit, not debit. To make a withdrawal, don't use an ATM, go into any bank that has a Visa logo. And, to check your balance, get on the internet, don't call Chase.
If you go to a bank ATM, that isn't a MoneyPass location, you will also face surcharges from that bank.
The state says they expect to save more than $3-million a year, by cutting down paper and postage costs, since there are nearly 290-thousand people unemployed in the state right now. They say last year they mailed nearly 8-million unemployment checks.
For more information from the on the debit card fees, and how to avoid them, CLICK HERE.
And for more on the new TAP cards in general, CLICK HERE.
