Meet the Big Banks’ Latest Slave Product: “Payroll Debit Cards”

I firmly believe that the biggest domestic policy error over the past generation has been the no-strings-attached bail out of the mega banks in these United States, and their subsequent designation as “too big to fail” and “too big to jail.”  This has given the sociopaths that run these crony organizations a license to steal, and they are doing a great job of it.

So in the latest bank theft product, employers of low income workers are being persuaded to pay their employees via “prepaid payroll cards.”  Not only are these cards typically associated with high fees, but they also discourage employees from using credit unions for their banking needs.

While companies try to defend themselves by saying they are providing a cheaper method for employees that do not have bank accounts to gain access to their funds, in many cases using these “prepaid cards” isn’t simply an option, but a requirement.  Oh, and take a guess why the mega banks are pushing into this line of business?  Prepaid cards are essentially exempt from financial regulation.  Serfs up boy and girls.  From the New York Times:

A growing number of American workers are confronting a frustrating predicament on payday: to get their wages, they must first pay a fee.

For these largely hourly workers, paper paychecks and even direct deposit have been replaced by prepaid cards issued by their employers.

These fees can take such a big bite out of paychecks that some employees end up making less than the minimum wage once the charges are taken into account, according to interviews with consumer lawyers, employees, and state and federal regulators.

Devonte Yates, 21, who earns $7.25 an hour working a drive-through station at a McDonald’s in Milwaukee, says he spends $40 to $50 a month on fees associated with his JPMorgan Chase payroll card.

Anyone surprised that “the morgue” is at the center of this?

“It’s pretty bad,” he said. “There’s a fee for literally everything you do.”

Many employees say they have no choice but to use the cards: some companies no longer offer common payroll options like ordinary checks or direct deposit.

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