High-priced doles in Colorado

[img_assist|nid=8200|title=|desc=|link=none|align=left|width=100|height=100] Last month Colorado state started a new program of depositing unemployment benefits right into the accounts of beneficiaries at Chase Bank. The single way to get funds from the account under the program called "Colorado Automated Payment," or CAP Card is using a dedicated debit card.

"It's a program that we were very excited about here at the Colorado Department of Labor," said Alice Johnson, Unemployment Insurance Staff Services branch director for the Colorado Department of Labor and Employment.
"Being able to provide services to our customers in a more efficient and quicker time frame and also being able to save money at the same time, so I think it's a great benefit not only to our customers but also to the state of Colorado," Johnson added.

The CAP Card program is surely to benefit the Department of Labor and Employment , as per its calculations they will save $250,000 in postage and check processing. However, it does not necessarily mean that the recipients will be advantaged either. On the contrary, some benefits recipients claim the new program is costing them precious money.

"I believe that when we went in the first time to use it, and we went in to verify how much was in the account, they took a charge for that," said Nancy DeSimone, an unemployment benefits recipient.

For checking the balance in her unemployment account DeSimone got a receipt showing she was charged 50 cents.
The fine print on the CAP Card contains even more fees:

• $1.50 for using a non-Chase ATM
• $5.00 for a teller transaction at a non-Chase bank
• $12.50 to write a check on the account

"I don't want to see them come out making profits off of people who are unemployed," DeSimone added.
"There is information available via the online system with Chase as well as the IVR where they can check their balance at no charge," Johnson explained.

Another recipient, Kim Bruck, who was laid off from her bookkeeping job in March: "I think I got three checks, maybe four, and then I got the information and the card in the mail and I broke down and cried when I got it."
What was more disturbing is the way to get the money from the debit card into her regular checking account at another bank.

"I can't take my debit card to my lease office to pay my rent ... and say, 'Here' ... that doesn't work," Bruck said.
She has to go to an ATM to get her money out in cash and carry it to her own bank.
"I'm just not comfortable with it," Bruck said.

"Because it's a new program for our customers, I believe that's where some of the frustration is, because it's brand new and it takes some time to adjust to the new system," Johnson said.

As per Alice Johnson the Department is going to introduce direct deposit which is found more convenient with all the beneficiaries as the money goes directly into their personal bank accounts, much like the way the federal government distributed the stimulus checks.