Workers can refuse to get paid by debit card
The Consumer Financial Protection Bureau is now warning employers against this increasingly common practice.
At least, that's the view of the Consumer Financial Protection Bureau (CFPB), which issued a bulletin warning employers against the practice that has spurred at least one class action, according to the Associated Press. New York Attorney General Eric Schneiderman has also raised questions about using debit cards as an alternative to paychecks. Companies have argued that the cards are a cost-effective means of paying their workers.
ATM pay cards are mainly used by people without bank accounts, which experts say is a growing problem.
A 2011 survey by the Federal Deposit Insurance Corp. found that 28.3% of households are either unbanked or underbanked, meaning they conduct at least some of their financial transactions outside the traditional banking system. In 2009, that rate was 18.2%. Roughly 9% of households do not have a savings account, while about 10% lack a checking account.
"The most common reasons why households report they do not have bank accounts are that they feel they do not have enough money for an account, or they do not need or want one," said the FDIC.
Unfortunately, many of these consumers wind up paying high fees to access their money through outlets such as check-cashing services. This proves yet again that many Americans remain angry at the nation's financial institutions five years after the start of the worst economic bust since the Great Recession.
A whopping 37% of voters surveyed by the Center for Responsible Lending said they had been "overcharged" or deceived by a financial company. That perception is prevalent among African Americans, voters in their 40s and middle-income voters. Not surprisingly, support for the CFPB's stance on debit card pay practices is high among people who feel this way.
Jonathan Berr does not own shares of the listed stocks. Follow him on Twitter @jdberr.
Sooner or later, the people facing downward mobility will start to vote for people who have ways
to stop it!
I would suggest a federally insured Credit Union as a alternative to a Bank. Their profits above a reserve required by the government, have to be returned to their members as dividends or lower cost for services.
Banks by their very nature SUCK as much of your money as possible. Their managers are paid bonuses for making money on the backs of their depositors and squeezing those with loans.
Consolidation of these small banks into large multi national corporations have removed the personal service from the equation. If you feel your bank doesn't know your are right. Just get online and see who owns your local bank.
There is not way to fix the basic nature of a bank. You just need to figure out a way to use their services less.
Turn off your I-pad and use your head!
I do not understand this high fee nonsense. Just look around. SS told me I had to have a card
so instead of using theirs I looked around. I use Netspend. With direct deposit the monthly fee
is $5.00 and no charge to the account holder for transactions. Plus, it has cash back benefits like a
credit card ! If you are using an employer provided debit card and the fees are on everything then your employer is most likely making money off you as well as the card provider.
No bank? A bunch of criminals writing bad checks, hiding money from the IRS or just to plain stupid to be able to balance one.
That is why no bank account, so who really cares if they get ripped off.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The stock market finished a down week on a cautious note with small caps leading the retreat. The Russell 2000 lost 0.5%, widening its weekly decline to 2.6%, while the S&P 500 shed 0.3%. The benchmark index ended the week lower by 2.7%.
This morning, the market was provided a basis to rebound with the July employment report, which was just right for the policy doves (209K versus Briefing.com consensus 220K). It showed payroll growth that was weaker than expected, ... More
More Market News
The company complains after the son of Florida State's football coach is televised wearing -- gasp -- Under Armour.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'