J.P. Morgan's Food Stamp Business

I just came across this story and am disturbed, but not surprised, that JP Morgan is making money off the problem they helped create:

J.P. Morgan is getting rich off of poverty. JP Morgan is the largest processor of food stamp benefits in the United States. JP Morgan has contracted to provide food stamp debit cards in 26 U.S. states and the District of Columbia.

JP Morgan is paid for each case that it handles, so that means that the more Americans that go on food stamps, the more profits JP Morgan makes. Yes, you read that correctly.

Considering the fact that the number of Americans on food stamps has exploded from 26 million in 2007 to 43 million today, one can only imagine how much JP Morgan's profits in this area have soared

.It turns out that JP Morgan also provides child support debit cards in 15 U.S. states and they also provide unemployment insurance benefit debit cards in seven states.

As reprehensible as it sounds, apparently, they are more efficient at the task than most states - no surprise there.

Apparently states have found that they can save millions of dollars by "outsourcing" the provision of these benefits to big financial firms like JP Morgan.

BUT, why are they so efficient? Outsourcing!

So what happens if you have a problem with your food stamp debit card? Well, you call up a JP Morgan service center.

When you do this, there is a very good chance that you are going to be helped by a JP Morgan call center employee in India. That's right - it turns out that JP Morgan is saving money by "outsourcing" food stamp customer service calls to India.

dailybail.com...

JP Morgan, big participant in the sale of worthless CDOs which helped bring about the recession, is now profiting from the environment they helped create.

Well that would explain why they are pushing foodstamps so hard in my town. There are signs all over telling people how to apply, and continues newspaper articles encouraging people to get on food stamps because its good for the economy.

reply to post by calstorm

Interesting, I see they're good at marketing their product as well! You need to have customers to have a successful business.

Originally posted by Maluhia
reply to post by calstorm

 

Interesting, I see they're good at marketing their product as well! You need to have customers to have a successful business.

So true. People complain about people getting free money from the government but the banks are the ones people should really be angry at. It appears as though its in their financial interest for more people to be poor. No wonder we have a shrinking middle class. I hope more people see this thread and realize what is is going on.

Well despite what happens with the rest of the economy at least the infrastructure is in place for this most important resource. As long as people have full stomachs it will limit complete anarchy and social breakdown if TSHTF.

reply to post by kwakakev

As long as people have full stomachs it will limit complete anarchy and social breakdown if TSHTF.

lol. Good point - people with full stomachs are usually less cranky and often too lethargic for anarchy.

They also process unemployment debit cards.

The Associate Press says that 30 states have cut deals with bailed out banks like JP Morgan Chase, Citigroup, and Bank of America to distribute unemployment benefits on debit cards instead of paper checks. The catch? All of these programs have fees — and in some states the cards are mandatory.

consumerist.com

eta: If I'm not mistaken, they do Child support, too.

reply to post by Maluhia


Another example of how big corporations end up exploiting, for profit mind you, services for the public. We often hear that government could not provide the same services as a private corporation for the price. Is it because a private corporation can outsource? Is that the way it works? I fail to see why it is not profitable to do business in America when wages haven't even kept up with prices and inflation for many many years.

Why can't there be a law that prohibits corporations that accept American contracts from outsourcing. The Free Trade Act prevents the government from creating any law prohibiting outsourcing to other countries.

I didn't need to know this. I think I just threw up in my mouth a bit.

I need a second line. Good grief - does JP MORGAN pay taxes - where is their headquarters?

I'm ashamed to say I work for a company called CGS that does tech support for JP Morgan, Citi, Best Buy and Sears. Our company has been on a pay freeze for 4 yrs when we were told it was only going to last 3 months! I have only been there 1 yr this month but I am looking for other options as we speak. The Sears queue we monitor is for a so-called help desk that is out of India. Most of the calls we get from them are issues they are suppose to handle, but just do not know how to do their jobs. I really hate working there and I have an interview in 7 hrs for another company. So it's just not cheap labor abroad... they find any company that can staff agents for $10 and load them up with work without raises. BTW they just opened more centers in Romania and Iceland... and still no raises...

reply to post by hadriana

JP Morgan's headquarters is in New York, most likely under some NYC tax abatement "keep business here" arrangement. I'm sure they don't pay as much taxes as they should, although I could not find any specifics.

reply to post by SmArTbEaTz

Don't worry about working for these people - It's just a job to you - not an allegiance. You're lucky to have one these days and the higher ups know that. That's what makes it easier for them to exploit their workers.

And thanks for the information on the other call centers.

reply to post by ExPostFacto

I fail to see why it is not profitable to do business in America when wages haven't even kept up with prices and inflation for many many years.

It probably could be profitable to a degree - but not as profitable as other countries where people are willing to work for far less than the minimum wage here. Gotta keep Wall St. happy. That's all that matters.