Idahoans will get unemployment debit cards, not unemployment checks

By Brad Iverson-Long
May 21st, 2010

The Idaho Department of Labor will soon no longer mail out unemployment checks to Idahoans looking for work, instead using debit cards or direct deposits into people’s bank accounts.  The department said it will take five weeks to make the switch away from checks, and that eliminating checks would save $130,000 in postage and check processing costs.

“The debit card and direct deposit options will benefit claimants by giving them direct access to their weekly benefit payments without check cashing fees,” said Director Roger B. Madsen.  ”Moving to electronic payments should also help eliminate instances of checks getting lost in the mail, or worse yet, stolen from mail boxes.”

The labor department currently provides unemployment benefits to 44,000 Idahoans.  Idaho’s unemployment rate has dropped two straight months and is now 9.1 percent.  Congress has extended some unemployment benefits to up to 99 weeks.  More than a third of people receiving benefits already use direct deposit for their weekly checks.  The average weekly benefit is $261, and benefits range from $97 a week to $359 a week.

People receiving unemployment benefits from the department’s Boise office will stop receiving checks on May 26.  Meridian and Canyon County offices will follow in the switch to debit cards on June 16, and all other offices will switch on June 30.  US Bank will issue the debit cards.

Read a labor department news release about the change in issuing unemployment benefits here.

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