Limit Welfare debit cards to spending in state issued?

Discussion in 'Politics, Religion, Social Issues' started by Shivetya, Oct 5, 2010.

  1. Shivetya macrumors 65816

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    #1
    A no brainer or not?

    http://abclocal.go.com/kgo/story?section=news/state&id=7704795


    Apparently a small fraction of the money put onto these cards was spent outside the state, normally this would not raise much suspicion however sixteen thousand was withdrawn aboard cruise ships, $1.5 in Florida; these are California cards; and nearly 400 thousand in Hawaii. Then top off the millions withdrawn in suspicious locations California pays ATM fees when used at machines that charge!

    I guess my first question would be, why in the hell would you let them withdraw cash with the cards? Why not restrict them to point of sale purchases, no cash allowed. Or perhaps only a small amount which requires some type of form to be filled out justifying the expense?
     
  2. Rodimus Prime macrumors G4

    Rodimus Prime

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    #2
    Not really a fan of those limits. Also the ATM fees part the states bring on themselves.
    For example in Texas all unemployment goes on to a Chase bank ATM card. Their is no option to have it direct deposited into a bank account. I went to an ATM every every few months pulled cleaned out my card and then drove to my bank to deposit the money into my personal bank account.
     
  3. niuniu macrumors 68020

    niuniu

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    #3
    Welfare debit card...Wonder why we don't have those in the UK.
     
  4. renewed macrumors 68040

    renewed

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    #4
    Because luckily for most of you we left common sense over there when we boarded our ships.
     
  5. Don't panic macrumors 603

    Don't panic

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    #5
    once you decided to have unemployment subsidies, I don't see how it's relevant how are these paid.
    the idea is to get some money in the hands of the unemployed.
    direct deposit on a debit card seems to be a very reasonable and efficient way to do it.

    as far as the out-of-state/fraud aspect, it seems clear from the article that it is a non-issue. they already have a system to address fraud and those 'suspect' charges are miniscule compared to the total that is given out (the amount from the cruise ship is 0.0001%)

    the ATM fee is just a waste, they should be deducted from the account, to force people to go to places where there is no charge, or pay for the convenience.
     
  6. Rodimus Prime macrumors G4

    Rodimus Prime

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    #6
    I wish it could be changed to direct deposited into personal bank accounts. I hated the fact that it had to go on the state issued card. It made it much more difficult to spend the money.
     
  7. niuniu macrumors 68020

    niuniu

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    #7
    This is what we have in the UK
     
  8. Rodimus Prime macrumors G4

    Rodimus Prime

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    #8
    See that is the way it should be.

    Now I understand the point of state issued debit cards. A lot of people do not have bank accounts who are on welfare or collecting unemployment. But that the same time large numbers of them do have bank accounts. It is easier for them to operated out of their own personal bank.

    I know some companies that give their employees 2 choices. Either take direct deposit or take money on to a company issued debit card.

    States should do the same thing.
     
  9. paddy macrumors 6502a

    paddy

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    #9
    While I'm all for suggestions on how the budget could be made better, why don't you or any of the right wingers give out about the defense budget? It's the biggest single component of the federal budget after all.
     
  10. yg17 macrumors G5

    yg17

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    #10
    It's entirely possible to live in one state and work or shop in another. I live 5 minutes away from Illinois. Someone who lives just across the river from me might do some if not all of their grocery shopping in Missouri because the grocery stores here might be closer to them than some in Illinois.
     
  11. Peterkro macrumors 68020

    Peterkro

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    #11
    Banks in the U.K. can't refuse to give a basic bank account to any legal resident as well.
     
  12. OutThere macrumors 603

    OutThere

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    #12
    That's a pretty low rate of fraud overall. Certainly there are ways of monitoring for fraud that don't involve simply blanket-blocking out of state transactions. I live near two state lines and regularly buy things in New York, as the prices are much better than at the store in my town in Connecticut.
     
  13. Eraserhead macrumors G4

    Eraserhead

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    #13
    What happens if I lost my job two weeks before going on holiday on a cruise ship? Would I be unable to spend my unemployment pay on the ship?
     
  14. Rodimus Prime macrumors G4

    Rodimus Prime

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    #14
    my understanding in the US about the only way that you can have trouble getting a bank account is if you get blacklisted because you over drew your account so many times and they bank closed it out and banned you.

    But then again I have never really had that issue because I keep all my accounts in good standing.
    But like I said a lot of people particlure poor people do not make bank accounts because they feel they do not make enough to feel they need one or think they need one or do not trust a bank.

    I know I did not make a bank account when I got my first HS job because I never really felt like I had enough money to justify it. Not like I needed one for 50 or so a week. I knew when I worked for TTU I would get like 40 or so a paycheck every other week and I never bother depositing the money. I would just go cash it out. I had a bank account but not easy access to it and did not want to mess with it. Later I direct deposited it out of the fact I was lazy and did not want to go pick up my paychecks. I went at the end of the year and pick up all the pay stubs.
     
  15. Eraserhead macrumors G4

    Eraserhead

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  16. Rodimus Prime macrumors G4

    Rodimus Prime

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    #16
    tell you the truth I could think of a way to over draw them.

    That would be deposit a check for cash and that check bounces. The bank will take the money from your personal account and if it is a basic account that could put it negative.


    Either way like I said I do not understand all those rules because I am at a credit union and my accounts are in good standing.
     
  17. Eraserhead macrumors G4

    Eraserhead

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    #17
    I don't think a basic UK bank account comes with a chequebook.
     
  18. steviem macrumors 68020

    steviem

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    #18
    Basic accounts in the uk can only go overdrawn with fees imposed by the bank, if you can't pay a direct debit, for example, they will charge you £30, and then some will charge you for going into an unauthorised overdraft. Really wrong if you ask me.

    We don't really use cheques for anything now in the uk, although they do seem to still be very prevalent in the us, so that is the problem, I guess they could make it so you can only withdraw or debit from cleared funds.
     
  19. Peterkro macrumors 68020

    Peterkro

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    #19
    At least one bank does issue a cheque book.The law was only brought in less than ten years ago partly because of the large number of people who were refused accounts prior to that for all sorts of spurious reasons and the government wanted to change to the payment of benefits to direct bank deposits for security and economic reasons.
     
  20. it5five macrumors 65816

    it5five

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    #20
    Yep. I live very close to the PA border. I see many PA license plates in grocery store parking lots here in NY, since towns right across the border are pretty small and don't have the types of stores we have here. PA border towns pretty much only sell cigarettes and fireworks.
     
  21. Rodimus Prime macrumors G4

    Rodimus Prime

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    #21
    looking at it 69mil is chump change of the budget. That is less than 1% (from the news video).

    This is another example of piss poor journalism. It is made to get people angry.

    They could go to a vocher system which would cost more for less. Chances are it would cost more to get the system working and running than the 70 mil spent out of stated and less would be offered. Only people getting rich are a few fat cats any how.

    That 69 mil falls with in range of standard use. Those people do go out of town. They do save up for trips and yes they will pull from their well fare for those trips.
     
  22. FX120 macrumors 65816

    FX120

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    #22
    My mother in law is a cake decorator for Albertsons, and I guess several times each month someone will come in and buy a wedding cake for several hundred dollars, and pay for it with food stamps.
     
  23. RawBert macrumors 68000

    RawBert

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    North Hollywood, CA
    #23
    ^^^ Now that is totally effed up. :mad:

    IMO, food stamps should be limited to the disabled and elderly. I personally know several people who take so much advantage of the system, it's ridiculous.

    I'll give you guys one example... An ex-porn star (don't ask which one) is living in a shelter with her loser husband (who hasn't worked a day in his life) and six small children - and is pregnant with her seventh. She's only 23. They get about 12-15 hundred dollars in food stamp money per month.

    Insanity!
     
  24. JoeG4 macrumors 68030

    JoeG4

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    Bay Area, Ca.
    #24
    I will agree that something needs to be done about people abusing the program by having a bunch of kids (7 kids on welfare?! OMG!) - I really don't think it should pay for kids that are conceived while on welfare.... seems kinda.. wrong.

    That said, the abuse problems were probably just as bad, if not worse with vouchers - just about any convenience store would happy exchange those for cash lol.
     

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