Private Bankers Exploit Prisoners and Families

This company got its first contract in Passaic County (NJ) Jail.

[From article]
In March of last year, the Virginia Department of Corrections informed the families of inmates that JPay Inc., a private company in Florida, would begin handling all deposits into inmates’ accounts.
Depending on how much money is sent, the fee charged families can be as high as 35 percent. In other states, JPay’s fees approach 45 percent.

http://sharylattkisson.com/companies-charge-high-fees-to-families-of-inmates

Companies Charge High Fees to Families of Inmates
by sattkisson

on September 30, 2014

* * *

[From article]
To send Eddie $50, Taylor must pay $6.95 to JPay. Depending on how much she can afford to send, the fee can be as high as 35 percent. In other states, JPay’s fees approach 45 percent.
After the fee, the state takes out another 15 percent of her money for court fees and a mandatory savings account, which Eddie will receive upon his release in 2021, minus the interest, which goes to the Department of Corrections.
[. . .]
as the economy went into recession, state budgets were squeezed and officials looked more aggressively for ways to cut spending on prisons.
Already, private vendors had stepped in with a solution: They would charge prisoners sky-high prices for phone services, snack foods, hygiene products and clothing, then return a large cut back to the prisons — often 40 percent or more.
[. . .]
When states offer its music players and tablet computers for sale to inmates, they often confiscate radios that people already own, according to inmates in Ohio. This leaves inmates dependent on JPay’s music downloads, which can cost 30 to 50 percent more than the same songs on iTunes, inmates say.
[. . .]
Then someone in Passaic County, New Jersey, suggested that they offer the county 10 percent of their revenue, “so the jail would be less of a tax burden on the community.” The warden signed up on the spot.
[. . .]
Regulators in seven states have levied fines totaling $408,500 against JPay for operating without a license.

http://www.publicintegrity.org/2014/09/25/15761/prison-bankers-cash-captive-customers

Prison bankers cash in on captive customers
Inmates' families gouged by fees
By Daniel Wagner
September 30, 2014