April 15, 2011:NWLP
4/12/11
10:17 AM
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US Bank gets use of state funds, but nicks unemployed with ATM fees
Service Employees International
Union (SEIU) Local 503 went public
last month with an effort to shame US
Bank for charging ATM fees to unem-
ployed workers and single parents.
US Bancorp has a contract with the
State of Oregon to make unemployment
benefits and court-ordered child support
payments available to recipients via Re-
liaCard — a reloadable VISA debit card
that carries the US Bank logo. Over
350,000 Oregonians currently hold a
ReliaCard, and last year just over $1 bil-
lion in funds were deposited into US
Bank for beneficiaries of the two pro-
grams. Just like with other deposits, US
Bank has the use of those funds until re-
cipients withdraw them.
ReliaCards are treated just like other
debit cards, and users can get cash back,
without paying fees, where merchants
allow that. But US Bank charges Reli-
aCard users $1.50 per transaction for us-
ing its own ATMs, after two free with-
drawals per month. And when users
withdraw funds from non-US Bank
ATMs, those ATM owners charge a fee,
and US Bank adds its own $1.50
charge, after the first two transactions.
Most unemployment and child support
recipients avoid these fees by choosing
direct deposit into their own bank ac-
counts — instead of ReliaCard. But
many of them opt for ReliaCard be-
cause they lack bank accounts. In other
APRIL 15, 2011
words, SEIU says, the State of Oregon
is letting US Bank nickel-and-dime
some of the poorest Oregonians when
they access state-managed unemploy-
ment insurance and child support —
funds that they’re legally entitled to re-
ceive.
Local 503, which represents 22,500
state employees, delved into the issue
after several members who work at the
Oregon Employment Department
flagged the ATM fees as a needless
abuse. But the effort also fits into a
longer-term nationwide campaign by
SEIU — to scrutinize the big banks that
are responsible for the financial crisis,
and to hold banks accountable when
they do business with the public.
Funds for court-ordered child sup-
port come through the Oregon Depart-
ment of Justice, while the unemploy-
ment insurance funds come from the
Employment Department. But it’s the
state treasurer’s office that negotiates
the contract with US Bank.
Local 503 leaders met with State
Treasurer Ted Wheeler to argue against
allowing ATM fees. On March 15, the
union sent a letter to state legislators
suggesting close review of the US Bank
contract. Then on March 18, Local 503
members picketed outside 15 branches
of US Bank in 14 towns and cities
around Oregon, with signs bearing slo-
gans like, “Families in need can’t afford
SEIU Local 503 member Cynthia Barrick of the Oregon Department of
Education in Salem pickets outside a US Bank March 18 to protest the
financial institution charging ATM fees to Oregonians collecting
unemployment benefits. The State of Oregon contracts with the bank to
handle unemployment payments.
US Bank greed.” Picketers also col-
lected 2,485 signatures on petitions
calling on US Bank to stop charging the
fees, and to negotiate a fair contract
with the state of Oregon. [The petitions
are also available online at a campaign
web site, faireconomyoregon.org. That
site is also collecting stories from peo-
ple who’ve used ReliaCards, which will
NORTHWEST LABOR PRESS
be shared as the campaign continues.]
In California, Bank of America has
a contract for a similar program, but
charges no fees to use its ATMs, says
Local 503 political organizer Melissa
Unger. In fact, SEIU found that in eight
other states where US Bank has the Re-
liaCard contract — South Dakota, Ohio,
Idaho, North Dakota, Arkansas, Ne-
braska, Wyoming and Minnesota —
users pay no fees when they make with-
drawals at US Bank ATMs. So why
does Oregon let US Bank charge fees to
some of Oregon’s neediest residents?
Oregon Treasury spokesperson
James Sinks said US Bank would pre-
fer to offer unlimited free withdrawals
at its own ATMs, and charge a fee for
ATM withdrawals from other banks.
But Sinks said many unemployed Ore-
gonians don’t live near a US Bank
branch, and thus the treasurer’s office
prioritized getting US Bank to not
charge fees for the first two out-of-net-
work ATM transactions.
The direct deposit and ReliaCard
programs save the state millions of dol-
lars by reducing the need to print, mail
and process checks. Of the nearly $2.5
billion Oregon paid out in unemploy-
ment benefits last year, 38 percent was
deposited in ReliaCard, 57 percent was
directly deposited to bank accounts,
and 5 percent was paid in the form of a
check. [The Employment Department
mails a check for the first week of ben-
efits.] US Bank covers all costs associ-
ated with creating and mailing the cards
to recipients. ReliaCard holders include
298,068 unemployment insurance ben-
eficiaries and 59,831 parents receiving
court-ordered child support from the
other parent.
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