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View Diary: New Bank Fee-for-All: Truly Despicable Charges (111 comments)

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  •  Some facts about (9+ / 0-)

    the California EDD debit card program:

    - you can set up a direct deposit of benefits into your account from the BofA account, but this may take a couple of days.  In the meantime, BofA gets to use that money.

    - you can "avoid" fees by using BofA ATM's, and you get two free ATM uses per benefit disbursement.  However, if you need to pay a bill the day after you get your benefit, you might be SOL because of the time it takes BofA to transfer the money to your account.

    - In the end, this is a boondoggle for BofA.  They get to touch over $30B more annually with their smarmy paws.  22,500 cards are being issued daily, and over 730,000 cards have already been issued. EDD states that this costs the state nothing; BofA makes their money off the fees, mostly from retailer transaction fees.

    The whole thing is structured to encourage benefit recipients to use the cards directly for purchases and payments.  That's how they make the money. The best thing for recipients to do is to transfer the all the benefits out immediately into their own account.

    "Mediocrity cannot know excellence." -- Sherlock Holmes

    by La Gitane on Fri Nov 11, 2011 at 11:46:00 AM PST

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