There’s a great story in the New York Times about prepaid debit cards. The story illustrates just how expensive scams like these can be, and just how willing businesses are to haggle money out of already impoverished individuals. One of the things that strikes me is the image on the site:

You’ll note that these costs are only for the first two months of use. What a rip-off!! I’m glad that at least companies like Wal-Mart are keeping the costs low.

Previously, I discussed how cash advance and payday loan schemes affected consumers, this scheme is similar and much more invasive. These types of scams hurt everyone. I’m willing to bet that as the new federal regulations regarding banking get implemented, you’ll see more of these unregulated types of cottage industries emerge.

My colleague, Dan Nunley, posted a link to a great video addressing prepaid debit cards. I encourage you to view the video, and post your comments about this scheme.

Hat tip: Dan Nunley