Fees coming for inmate account deposits

9-6-2012 Oklahoma:

OKLAHOMA CITY - Relatives and friends of inmates soon will be charged to deposit money into the inmates' prison accounts.

By Oct. 1, the Department of Corrections will begin using two private companies to process the funds.

The fees vary depending on the transaction method, such as money order, credit card or online transfer and amount.

In the past, the agency had handled inmate banking internally and required the use of a money order.

The new system will allow those depositing the funds more options to make the payments, Tina Hicks, Department of Corrections administrator of contracts and acquisitions, said last week. The new system will allow relatives to walk into certain locations, such as Ace Cash Express or Walmart, to make a payment.

Inmates use the funds for a variety of items, ranging from food to clothing and fans.

The Department of Corrections will receive a 50-cent commission per transaction, with the exception of money orders, Hicks said.

The fee is expected to generate about $7,000 in revenue for the agency, she said.

"The overall intent was not for the department to generate revenue but to get out of the business of handling money," Hicks said.

"It is going to get on their books a lot quicker, and with reduced staff, this is one thing they won't have to be doing," said Jerry Massie, a Department of Corrections spokesman. "It is a fairly cumbersome process the way we do it. It will be much more efficient and save the staff time."

But not all are happy about the change.

Dorothy Mcdowell's husband is at Jackie Brannon Correctional Center in McAlester. The Yukon woman lives on Social Security but sends money to the prison for her husband to purchase items such as sheets, socks and underwear.

"They are given rags more or less," she said of what the state issues to offenders. "I just don't think it is fair. Family members are barely making it now. Family members are helping their inmates. We are being punished for it."

Hicks said the fees for handling the deposits and transfers are essentially a convenience fee, adding that the companies have administrative costs associated with processing the payments.

"It will free up time as far as staff time with handling the money and deposits and the risk that goes along with that," Hicks said.

The contract was competitively bid, she said. ..Source.. by BARBARA HOBEROCK