People on Social Security typically aren’t amenable to giving away their benefits. In part, this is why paper Social Security checks are on the way out. The Wall Street Journal indicates that 2013 is the year in which the Treasury Department will stop paper checks and move entirely to direct deposit and prepaid debit cards. The intention is to save taxpayer dollars and make benefits more secure. But as outlined by many consumer groups, this will open the door for big banks like Wells Fargo and U.S. Bancorp to aggressively market option cash advance-style loans to their Social Security customers.
Fixed income guests are the target of bank marketing
Collateral for the cash until payday loans comes straight from the recurring deposits of Social Security benefits, says the National Consumer Law Center. Such personal cash loan original via customer phone call or online request. 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 loan 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.
Money making off the backs of boomers
As the latest Wall Street reform bill approaches law status, banks fear the effect the loss of automatic overdraft loans will have on their bottom line. The National Consumer Law Center believes this may be a big reason why these larger banks are aggressively pushing pay day loans products to Social Security recipients. Sources indicate that as much as $ 700 million in Social Security benefits are taken each year to pay overdraft fees, which draws focus to the magnitude of the issue for America’s monolith banks.
What can you do to escape the bank Social Security trap?
The Wall Street Journal suggests that consumers consider the prepaid debit card disbursement option. . Use them like ATM cards for buying and paying bills.
Discover more details on this topic
online.wsj.com/article/SB10001424052748704875004575375474092141764.html
en.wikipedia.org/wiki/Social_Security_%28United_States%29
