States found it cheaper to outsource these services. By switching to debit cards for food stamps and other benefits, states save millions of dollars in processing and administrative fees.on top of any other fees, it says. which would imply that the meat of the scam is "the fees it collects." And those are not to be sniffed at. bankster fees are what drove the mortgage bubble.
Companies, including JP Morgan, filled the niche. For a fee, the bank will provide debit cards to benefit recipients. Each month, they will load money onto the cards and on a daily basis process transactions at stores.
For unemployment insurance, the providers also process ATM cash withdrawals.
For instance, in Michigan, JP Morgan allows unemployment recipients two free withdrawals from its network of ATMs. For each addition withdrawal, the bank takes a $1.50 fee. If somebody loses their card, the first replacement is free. The second costs $7.50.
The banks also get a fee for each case they handle.
Take Indiana. JP Morgan gets 62 to 64 cents for each food stamp case handled monthly there. With 296,245 cases right now, that means the state is paying JP Morgan $183,672 a month on top of any other fees it collects.
Thursday, January 27, 2011
the moil and the glory
who cannot help but continue to be astonished at the money making schemes monster, mobster banks have concocted and arranged for themselves, their enrichment and the proles' further diminishment? i know i can't. this latest bit 'bout that fukkin jpmuthafukkinmorgan slurpin' fees off unemployment insurance recipients and people on food stamps. how's that free market workin' out for the yewwwnightidstates?