One of the nation’s largest banks is profiting on an unlikely group of customers: thousands of unemployed Tennesseans.
Almost 44,000 people who receive unemployment benefits through the Tennessee Automated Payment (TAP) card pay JPMorgan Chase & Co. 25 cents to $1 almost every time they use it, whether it’s to withdraw cash, make purchases or check balances.
Consumer advocates say that unfairly fattens the bank’s bottom line at the expense of those who can least afford to pay. One national consumer group calls the card among the worst of its kind in the country, saying it has the most “junk fees.”
JPMorgan Chase declined to say how much it has collected from jobless Tennesseans or respond to the critics, instead issuing a general statement saying that it’s “flexible in the way any fees/costs are borne in our programs.”
But the bank’s fees also have drawn the attention of Tennessee officials, who say changes could be on the way.
State officials hope to reduce or eliminate at least some of the fees when they negotiate a new contract, possibly with a different bank, later this month. The state has sought new proposals and has set a contract deadline for June 28.
No comments:
Post a Comment