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December 24, 2013

Michigan to replace JPMorgan Chase with BoA for providing unemployment debit cards

The state of Michigan is planning to switch to Bank of America (BoA), replacing JPMorgan Chase, as provider of its unemployment debit cards in the state in April 2014.

By Verdict Staff

The state of Michigan is planning to switch to Bank of America (BoA), replacing JPMorgan Chase, as provider of its unemployment debit cards in the state in April 2014.

According to the state, the new contract will cost them around $100,000 a year, but would generate savings of $150,000 for thousands of jobless people, who complained of being charged with high fees for using Chase-issued cards at ATM machines for balance inquiries, teller withdrawals and transaction denials.

Michigan offers unemployment checks on debit cards to around 82,000 people in the state.

With BoA, cardholders will have access to over 1,200 free ATMs, as against to around 1,000 offered by Chase.

Michigan Department of Technology, Management and Budget spokesman Kurt Weiss said people will see that fee and many others go away after Bank of America takes over.

"This is gonna be a much better tool for them, and cheaper for the state, so really everybody wins on this," Weiss added.

"The joint review committee made a recommendation based on the best value for the state and Bank of America won.

"We have had a good track record with Bank of America on our state purchasing card contract and we look forward to working with them on this new contract."

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