People on Social Security generally aren’t amenable to giving away their benefits. This is why there’s word in government that paper Social Security checks should be routed out. The Wall Street Journal reports that the Treasury Department plans to stop issuing paper Social Security checks by 2013 and distribute monies via direct deposit or prepaid debit cards. Doing so will ideally make benefit distribution more secure and conserve the taxpayers’ money. Sadly, big banks like Wells Fargo could not leave well enough alone; consumer groups fear they will market their own high-cost cash til payday loan loans to Social Security customers at an even more frenetic pace.
Fixed income guests are the target of bank marketing
The National Consumer Law Center indicates that the new breed of bank-issued cash until payday loan products draw straight from consumer Social Security benefits as the necessary collateral. These personel loans can be requested from the bank via telephone or online. When the customer’s following Social Security benefits payment hits their account via direct deposit, the bank gets its money before the consumer can spend it. Where it gets really scary is when a payday loans no fax from the bank isn’t paid in 35 days: the bank takes out everything owed, whether it causes overdraft and an explosion of fees or not.
Generating funds from disadvantaged customers
Losing automatic overdraft is something banks fear, as the Wall Street reform bill gets set to become law. The National Consumer Law Center believes this may be a big reason why these larger banks are aggressively pushing payday loans no faxing products to Social Security recipients. Banks have squeezed their Social Security customers to the tune of $ 700 million in benefits each year for overdraft fees.
Want an choice to banks fingering your Social Security?
The Wall Street Journal addresses the other disbursement option: prepaid debit cards. They do not cost much and they’re fully FDIC insured. Use them like ATM cards for getting and paying bills.
Discover more info on this topic
online.wsj.com/article/SB10001424052748704875004575375474092141764.html
en.wikipedia.org/wiki/Social_Security_%28United_States%29
