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Conditions And Fees On Payroll Cards Are Drawing Attention

Thursday, July 18, 2013 - 1:43 PM
From Credit Union Times:
State officials and federal legislators have become interested in the conditions under which employers pay employees with payroll cards and the fees that issuers charge for those cards.

The topic of employees being forced to use payroll cards with fees as a condition of their employment has drawn attention from a Change.org petition and a class action lawsuit filed in Pennsylvania.

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The article also notes that New York Attorney General Eric Schneiderman has reportedly launched an investigation and is also converned is concerned that the card's fees might not be fully disclosed or excessive.

In addition, the recently confirmed director of the CFPB (Consumer Financial Protection Bureau), Richard Cordray, has been asked to investigate whether some employers have been getting paid for the numbers of employees that they steer onto the cards. 

You may also be interested in this article on the petition started at change.org to prevent McDonalds restaurants from paying their employees only with fee-laden reloadable payroll cards. 
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