CROOK ALERT!! Payroll Cards are the Latest Wall Street Banksters' Scam
Wall Street Banksters and Low Wage Employers Cooperating to Screw Employees with Payroll ATM Cards
Major banks such as JPMorgan Chase, Citibank, Bank of America and Wells Fargo have a new scam, perfectly legal of course, designed to collect exorbitant fees from employees of WalMart, Home Depot, Taco Bell, Walgreen, McDonalds franchisees and other low wage employers who cooperate with the payroll card scheme promoted by the bankers.
The banks claim that employers can realize significant savings by using their ATM payroll cards rather than issuing paychecks. What they don't say is that the minimum wage employees are charged exorbitiant fees by the banks for using the cards--inactivity fees, overdraft fees, fees for transferring payroll card balances to checking accounts, out-of-network withdrawal fees, fees for balance inquiries.
The bankers' payroll card schemes are not covered by recently established federal limits on credit and debit cards; however the NY State Attorney General, Eric Schneiderman, announced this week (July 2) an investigation into payroll cards utilized by some of New York state's largest employers including Walgreen, McDonald's and WalMart. The issuing banks claim the cards are a "usefull tool for low-wage workers who don't have bank accounts." Critics claim that fees charged for using the cards can "quickly devour the pay" of low-wage and part-time workers. Attorney General Schneiderman said "We are concerned about excessive or insufficiently disclosed fees which may unduly reduce employees' take home pay." He is also examining fee schedulesto determine how the fees are accrued.
7-1-13NYTimes--"Paid Via Cards, Workers Feel Sting of Fees"
- Paid via Card, Workers Feel Sting of Fees - NYTimes.com
For many hourly workers, paper paychecks have been replaced by prepaid cards, which often involve fees that can quickly add up and take a bite out of their pay.