Amidst the recent heartfelt story of a DJ who fell from grace, got involved in drugs and alcohol and was booted out of the radio industry a decade ago, ending up homeless and on the streets, we in the industry are reminded of the MANY black radio announcers who are out of work and who may even be homeless as well.Tom Joyner is a national radio host. Joyner is not local and while Joyner may be considered by some to be community based and an advocate of issues that concern the black community, there is no longer the much-needed LOCAL community connection black listeners were once afforded and desperately NEED from black radio stations.While syndication has its place, many in urban radio wonder when is a little, just too much? Has Black radio, which was once the ONLY voice for the black community besides the black church, now become a money making machine for mega hosts to take advantage of the amount of listeners they have in various markets?Syndicated radio host Tom Joyner , a popular figure in the black community, is lending his voice to a prepaid card even though several celebrities have come under fire for doing so recently because this cards charge excessive fees and are often marketed to low income groups who are want to be affiliated with “success” but at a VERY high price.
Prepaid cards function much like debit cards but aren’t tied to bank accounts and users can load the cards with a desired dollar amount and reload them as needed. What kind of a “credit card” is that? That’s the consumer’s own money and they are paying to use their own MONEY? Joyner is trying to clean up the situation but saying unlike some other cards on the market, his new Reach Card has three clearly disclosed fees: a $9.95 activation fee, an $8.95 monthly fee and a $2.50 ATM withdrawal fee…. but the 59-year-old radio vet is not including the fees charged when you use the ATM machine that belongs to the bank which could be up to an additional $3.00 (or more) so the ACTUAL ATM fee, for example could be a whopping $5.50 per use! Some of these trashy cards also include overdraft fees for using YOUR OWN MONEY which some banks charge as high as $39.00 EACH so you can almost bet the prepaid company will charge even more. Can you imagine you are overdrawn by $2.00 and you are charged $39,00 as a penalty ON YOUR OWN MONEY?The Reach card should cost about $120 a year for most users. $120 a year to use your own money, for a piece of plastic to build your self esteem? Why not, I don’t know… USE YOU OWN CASH and save those excessive fees? PreCash is the company issuing the card in partnership with Joyner. The radio host last week began reading ads for the card on his morning show, which reaches 8 million black listeners a week in more than 100 markets. That’s significant because blacks are more likely to be unbanked or underbanked, meaning they avoid traditional banking services, which in comparison to this is a damn shame. It would help if Tom had a financial advisor on the show on a regular basis to teach black listeners the BENEFIT of working with financial institutions and handling their money…. Oh, TOM can’t make any money that way. What are we thinking?The Reach card was designed specifically with Joyner’s listeners in mind, said Mia Mends, general manager of PrePaid debit for PreCash. “We don’t assume all of them are unbanked or underbanked, but there’s probably some overlap.” She forgot to include “Child, we just want dey damn money.” That the biggest crock of bullsh… we’ve ever heard and Mia is full of Diarrhea. PreCash see a way of making some damn PreSTASH at the black listeners expense. Tell the damn truth.One celebrity-endorsed card that generated sharp criticism was the Kardashian Kard, which bore the image of the reality TV sisters. But Kim, Khloe and Kourtney cut ties with the card when its high fees were slammed by consumer groups.Before it was taken off the market last month, the Kardashian Kard cost $59.95 for six months, or $99.95 for 12 months. That translates to between about $8 to $10 per month. But there were numerous other fees for balance inquiries, ATM withdrawals, customer service calls and cancellation.”This is why we’re so baffled as to why customers think these (prepaid) cards are cheaper than a bank account,” said Suzanne Martindale, an attorney and associate policy analyst with Consumers Union, an advocacy group.
Do your research. Compared to the other “ripoff” reloadable debit cards, the ReachCard appears to have far less fees than most all others. Also, regarding ATM fees, if ANY “banked” person goes to an ATM outside of their bank, there are additional fees added on top of the bank’s fee. And one last thing, try spending your “cash” on the internet or using the convenience of “pay at the pump” and if you lose your “cash”, it’s gone….
I’ve actually HAD one of those cards and I’ve done my research. A person can save those erroneous fees and go to a bank and get a secure card and at the same time rebuild their credit. Thanks for pointing something else out. Does Tom’s card report to credit agencies? This is always a plus when one is trying to improve their credit. The BEST card in a situation like this where a person feels they have to have one of these cards is the Green Dot card. Otherwise go to a bank, where they report it, save those fees and rebuild or generate credit at the same time.
Per my research, the average fees paid on “bank” accounts per year is in the $180-200 range. Here’s one of my references:
http://news.blogs.cnn.com/2011/01/07/dollars-sense-bank-fees-rise-from-the-dead-ford-focus-goes-electric/
If a customer has 3 or 4 overdrafts on their bank account per year, that customer is exceeding the $120 stated by ReachCard. The ReachCard has no overdraft charges, since the transaction will be declined (with no decline fee), if the funds are not available. Plus, these cards are designed for people who cannot get a bank account for various reasons, so what you and I may take for granted, may not be accessible to others.
I “believe” (not sure) the ReachCard does credit building, but through the secondary services and not the primary ones.
Regarding Greendot (the industry leader), they have more fees, although all-in they are comparable.
Unfortunately for the industry, the Kardishians have put the prepaid debit industry in a negative light. We should not judge an industry (or new product) using the worst-case scenerio. Anyway, why would anyone get finanical services from a sex-tape star? 😉
By the way, I do have a Premier card (from PreCash), and I pay NOTHING. I do this by only loading with direct deposits (free) and doing non-PIN, signature based transactions only (PIN based transaction are $0.95). There is a $2.95 decline fee, which I avoid by getting my daily balance texted to me each day (at no extra charge).
WAKE UP AMERICA!!! HOW IS IT THAT A BANK CAN TAKE MY MONEY MAKE A PROFIT FROM IT AND GIVE ME NOTHING? THE ONLY WAY I CAN GET SOME MONEY IS TO INVEST THE AMOUNT THE BANK WANTS IN IT THEN I CAN GET A PERCENTAGE..NOT ONLY THAT BUT WHAT ABOUT THE MONTHLY FEES FOR THEM TO KEEP TRACK OF YOUR MONEY YOU SPEND?. OK SAY I PUT 400.00 IN THE BANK NEVER TOUCH IT FOR 5 YEARS DOES MY MONEY GET GREATER? NO BUT THE BANK WILL USE IT TO LOAN IT TO OTHERS AND MAKE A PERCENTAGE IN INTREST AND GUESS WHAT I DON’T RECEIVE A PENNY, BUT WAIT, IF I HOLD MY MONEY MY HOME AND IT’S MORE THAN 3,000.00 IT’S A CRIME? MANY PLACES IT IS I HEARD. DO YOUR RESEARCH AND LET ME KNOW!!! JUST AS WELL AS INSURANCE ON A CAR IF YOU WENT TO BUY A CAR WHY CANT YOU PAY ONE SET PRICE FOR IT AND IT’S OVER.. YOU CAN HAVE INSURANCE FOR 12 YEARS ON A CAR AND NEVER HAVE A ACCIDENT, LIKE WHO WANTS TO HAVE A ACCIDENT, AND PAY THE COST OF THE CAR ALL OVER AGAIN AND GET NOTHING BACK, THAT WAS MONEY YOUR GAVE AWAY..THINK ABOUT IT…IT YOU GOT THE MONEY TO GIVE AWAY GET A CREDIT CARD. AS FOR ME I’M ALOT BETTER HOLDING MY MONEY MYSELF, I CANT CHARGE MYSELF A OVER DRAFT OR A FEE OF ANY SORT..JUST MY THOUGHT ABOUT IT ALL…..