Debit Cards to Pay Unemployment?

[Hot Topic]

What is the name of your state (only U.S. law)? California

The local CBS affiliate has reported that Californians receiving disability will be paid via Bank of America debit card rather than by check. It's not clear, but it APPEARS that a debit card will also cover unemployed Californians. It was mentioned that people can arrange to have the money applied to their accounts via direct deposit. It wasn't announced when this is supposed to take place.

Can anyone provide any clarity on this? It wasn't mentioned why Bank of America was involved as opposed to Citibank, for example.

 

[justalayman]

http://www.edd.ca.gov/About_EDD/The_EDD_Debit_Card.htm
It says December 10, 2010


I'm surprised. Typically Cali is ahead of the pack. Indiana and MI have had UI benefits set up this way for several years already. We don't have the disability benefits Cali has.


I would guess BOFA won a bid for the contract.

 

[CourtClerk]

Can't say definitively WHY B of A, but I can say that I've worked for 2 counties in CA and both of them use B of A for their banking, as well as several state agencies...

So maybe EDD is going with their existing bank. Can't recall whether or not EDD checks are being drawn on B of A bank accounts, but I believe a long time ago, they were.

 

[CreativeBlock]

I'm pretty sure that it's a matter that BoA bid the lowest on an RFP to provide those services.

That's more often than not how the government does business with any civilian business.

 

[Hot Topic]

I Googled it, and see that the Visa branded EDD debit card from Bank of America will be phased in over "a few months." Most eligible Californians will get the card by Spring, 2011. Until then, they'll get the check they've been used to getting. The card will be valid three years from the date of issue and accepted wherever Visa cards are accepted. People will have 24 hour, seven day a week access to the funds.

After the card is activated, some are all of the monies can be transferred to a checking or savings account.

People receiving disability checks are also going to receive the cards.

I suggest Californians cross their fingers, considering how many problems have been encountered with other cards.

 

[CourtClerk]

SDU did very well with rolling out debit card for child support payments, but the cards are optional, however, everyone thought they were seeing a disaster in the making when all of the LCSA's handed over support payments to one state agency.

They pulled it off, pretty much without a hitch. We aren't that bad, HT