Connecticut Offering Unemployment Debit Cards - The state of Connecticut estimates 135,000 residents are out of work, and the state Department of Labor is planning to make receiving unemployment benefits a little easier for those without a bank account. The state is implementing a new system that would allow people to collect unemployment benefit checks through a stored value debit card if they are unbanked, and direct deposit if they’re banked.
In Connecticut, unemployment benefits via a paper check are currently delivered by U.S. mail only, making them a target for postal errors, theft, or fraud. By turning over the electronic processing and delivery service to a third party financial institution, officials in Connecticut estimate that the state could save $1 million in printing and mailing costs this year, when the state expects to deliver over 4 million unemployment benefit checks.
"An unemployment check often serves as a lifeline for those who are out of work, and by providing this service, families will no longer need to worry about stolen checks, mail delays or potential fraud," a state department of labor official said last week.
People who use unemployment prepaid debit cards in the states that currently offer them typically don't have a bank checking account. In the past, these people had to use neighborhood check cashing stores that charged fees as high as 2%, or $6.00 for a $300.00 check. |
