After paying their debt to society, released inmates are finding themselves dinged by a hidden fee.
Prisoners are often given money when they leave jail. It could be the cash they came in with, money they earned at a prison job or funds deposited by friends or relatives. Recently, prepaid debit cards have replaced cash and checks as the way to return these funds to prisoners. Private companies market these cards as a cheaper, more convenient and secure way than checks for the institution to provide funds upon release.
But these cards can come with a cost — one paid by the inmate.
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“So you could go to jail overnight with a $20 bill in your pocket and when you’re released the next day, you’re given a release debit card and it has a $10 monthly fee,” said Aleks Kajstura, legal director at the Prison Policy Initiative.
Paul Wright, director of the Human Rights Defense Center, calls the practice “offensive and unfair” and he describes the fees as “pretty outrageous” – higher than what people pay for similar prepaid cards in the outside world. He wants them banned.
Both groups filed petitions with the Consumer Financial Protection Bureau (CFPB) this week, asking the agency to step in and regulate this little-known marketplace. They want the CFPB to ban all fees associated with these release debit cards, or at least require the correctional facility to provide the option of cash or a check.
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