Even if you aren't snared by an EPPICard phishing scam, the fees can still get you. (Photo: Flickr)

Unemployed Americans looking to access their state benefits have had a difficult time with the EPPICard debit card system in the past. The ATM card-style distribution system was designed to make it easy for the unemployed to access their benefits money. Unfortunately, numerous media reports have indicated that the program failed to go off without a hitch. As recently as June 20, the Fayetteville Observer reported that administrative fees plague unemployed consumers who can ill afford to pay.

When EPPICard does NOT amp up your budget

We already know that unscrupulous third parties have, in the recent past, exploited holes in the EPPICard debit card system to create a phishing scam to dupe uninformed consumers into revealing sensitive personal data for the purposes of identity theft. Those issues were supposedly addressed by state agencies and EPPICard officials. Now welfare consumers can access their quick payday funds without worry – unless they have to use their EPPICards multiple times per month or they enter their EPPICard PINs incorrectly. One Fayetteville Observer reader reported that making more than two EPPICard cash payday withdrawals per month from his bank of choice (Wachovia) produced an “excess use” fee of $1.50. Entering an incorrect PIN generates an “ATM denial” fee of 50 cents. While these possible fees for EPPICard pay day advances are reportedly spelled out on the various state Employment Security Commission websites where EPPICard is used, it’s clear that the unemployed don’t need this kind of nickel and dime exploitation that’s passed off as “service.”

Charging the unemployed for state benefits

Larry Parker of North Carolina’s Employment Security Commission told the Observer that there are “plenty of ways” to use EPPICard without being charged additional fees for a quick payday. What he failed to mention is why consumers should be subjected to fees in the first place. How is it that state governments failed to negotiate the consumer exploitation elements out of their contracts with big banks?

Don’t call EPPICard on the phone, either

Calling EPPICard, of courses produces an additional charge. Currently, 19 states use the EPPICard cash payday system, and all of them have displeased consumers to some degree. As Personal Money Market has suggested before, perhaps a return to paper checks and direct deposit is indeed the way to go.

Sources:

Fayetteville Observer

Your EPPICard account isn’t locked. Don’t bite the phish-hook… (Editor’s Note: Buckle up, preaching ahead)

Eppicards can be used the same as a standard debit card. Image from Flickr.

There are currently 19 U.S. states that use Eppicard to process and distribute state payments. Recently, Eppicard users have been the target of phishing scams. Are Eppicards an effective way for states to distribute benefits?

How Eppicard is used

The Eppicard system is a third-party “servicing” company that provides financial services for states. In 19 states, Eppicards are used to provide child support, unemployment and state benefit payments. In general, an Eppicard works very much like a debit card – the payment is deposited into an Eppicard account, and then the money is debited electronically when the card is used at an ATM or store.

Eppicards targeted by phishing

In Ohio, many Eppicard users are being targeted by e-mail and text message phishing scams. Eppicard users are receiving messages asking for them to update their Eppicard PIN. The Eppicard users are told that they need to update their information in order to get a personal loan or continue accessing their account. If Eppicard customers use the fake link or text message to “update” information, the scam artist empties their accounts. The FBI and state benefit agencies have issued warnings to rely only on www.eppicard.com or the state agency for information on Eppicard accounts.

Are Eppicards best for benefits?

The Eppicard system is, in general, a contractor for state benefits. The Eppicard system does offer benefits for some users; because they look and act like debit cards, Eppicards can be much simpler to use than other available benefit systems. However, Eppicard has garnered multiple complaints for business practices that look more like a Rush Card than a public service. Eppicard charges as much as $1 for every ATM transaction. Calling Eppicard customer service also creates an additional charge. Card replacement, denial of funds, overdraft fees and even balance inquiries end up with charges. While the Eppicard may be simple for states to use, there are concerns that the additional charges are taking advantage of people receiving state benefits. Most states, though, provide an alternative to the Eppicard, such as paper checks or direct-deposit systems.

EPPICard seems simple enough. But consumer experience has been checkered by misplaced funds, service problems and identity theft via online phishing scams. (Photo: http://www.jokqt.qkpy.com/common/imagelib/index.htm/1138_500_250_crop_e6393.jpg)

When you’re unemployed, your unemployment check each week is a real life-saver. Sure, most of us aren’t that far removed from living on the street if our jobs ceased to exist. That’s a disturbing reality that many Americans face in a system that has lost the ability to regulate itself. But what would you do if you had difficulty accessing your government unemployment checks or child support funds. It’s your last line of defense in a financial emergency, and you aren’t eligible for money loans without a job.

That’s what some have faced with EPPICard

EPPICard is a company that was contracted by various state governments to handle the distribution of unemployment and child support monies. The money is placed on a check/debit card that is supposedly easy to use at any retailer or ATM machine. However, this has not always proven true, according to the Web site Consumer Affairs. Not only have some people had difficulty accessing funds at some establishments, but there have been reports of missing money that should have been there and phishing scams perpetrated by individuals outside of EPPICard. Consumer Affairs reports that in 2008, Indiana Attorney General Steve Carter issued an alert about bogus messages via text, voice and E-mail that all claimed to be from EPPICard. Consumers who replied to those messages were tricked into giving up sensitive personal information that placed them in the line of fire for identity theft. The most common method used in the phishing scam was to send EPPICard customers messages claiming that their account had been closed due to “unusual activity.” Carter advises that if said attacks reoccur, consumers do not reply.

The EPPICard Web site (which I won’t link to because my browser suspects the phishing/hijacking is still going on there; see the photo below) states that the company will never ask for social security numbers, card numbers or PIN numbers via text, voice or E-mail. If there is a problem, an EPPICard  holder should call the number printed on the back of the card ONLY.

Other problems consumers have had with EPPICard

This is what my browser told me when I attempted to view eppicard.com. Consumer beware!

Deborah of Kershaw, South Carolina wrote on Consumer Affairs that she cannot access her account information online because the Web site will not accept her username and password. Anita of Atoka, Oklahoma reported that money left over from one distribution period did not carry over to the next period. Her calls to customer service consisted of multiple people telling her there was no balance, even though she kept careful records. Teresa of Henderson, Nevada took issue with the 35-cent charge for customer service calls to the company, as well as the general difficulty of reaching a live person. These people are just three of many who have had difficulty with EPPICard, and I’m sure many have needed money loans to make up for the trouble.

There are reports that EPPICard has worked to resolve these service issues, however. Check out the second YouTube video below. Harold of the “Harold Says” consumer advocacy Web site claims they told him they promise to work to fix the issues that have been plaguing some consumers, that they “take these concerns seriously.” That doesn’t necessarily mean the problems have been fixed, however. So I say consumer beware. Hopefully you don’t live in a state like Indiana that depends upon EPPICard to distribute unemployment and child support funds. If you do and are eligible for money loans, keep the number on speed dial or just click the button below.

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