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Wash. State seeks to kill ATM fee on welfare card withdrawals

March 26, 2012

Clashes over ATM fees on public benefits debit cards continue.A news reportby NPR affiliate KPLU in Seattle said that Washington State currently is negotiating a new contract with JPMorgan Chase that would kill the 85-cent fee Chase collects on ATM withdrawals from state welfare cards.

KPLU first reported on the fee in mid-2011, noting that Chase wasn’t disclosing it at ATM machines. After initially saying it was not "technically feasible" to do so, Chase did find a way to add an ATM disclosure.

But this didn't quiet the bank's critics, who said the fee amounts to a tax on the poor. In addition to removing the fee, advocacy group Burst for Prosperity wants the state to require that Chase offer welfare clients free banking — an important step to moving people permanent off assistance, said a Burst spokesperson.

Babs Roberts, who leads contract renegotiations with Chase said she agreed that getting clients banked is a priority, but that current contract negotiations do not call for free accounts. She also said that a deal to eliminate the ATM fee is near.

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