Article updated: 1/29/2013 11:56 AM

Report: States force jobless to pay needless fees

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People use a Bank of America ATM in Boston. Banks including JPMorgan Chase, U.S. Bancorp and Bank of America seized on government payments for unemployment compensation as a business opportunity and pitched card programs to many states. However to cover the costs of the programs, banks have hit all card users with a plethora of new fees.

Associated Press

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Jobless Americans are paying millions in unnecessary fees to collect unemployment benefits because of state policies encouraging them to get the money through bank-issued payment cards, according to a new report from a consumer group. People are using the fee-heavy cards instead of getting their payments deposited directly to their bank accounts. That's because states issue bank cards automatically, require complicated paperwork or phone calls to set up direct deposit and fail to explain the card fees, according to a report issued Tuesday,