Connecticut state labor authorities are warning jobless consumers against using a debit card issued through a check-cashing firm to try to collect their unemployment benefits.
The Connecticut Department of Labor said Friday that as many as 1,000 claimants ran into serious problems this week when the agency began paying unemployment insurance benefits electronically via either direct deposit or debit-card payments.
One unidentified check-cashing service tried helping claimants — for a fee — to access their benefits using a debit card different from the approved Chase Bank Visa debit card the state issues, authorities said.
As a consequence, a mixup in information entered into the state’s system resulted in those 1,000 claimants being delayed in receiving their unemployment payments, the labor agency said.
Sharing personal information also puts the claimants at risk of identity theft, Acting Labor Commissioner Dennis C. Murpy warned.
“Use the card that works!” Murphy said. “We want the public to know that there is never a charge to receive a state-approved debit card, or for selecting the direct deposit option for electronic payments.”
