ALEXANDRIA, Va. - So that members can continue to receive their benefit checks in case a hurricane halts or delays mail delivery, NCUA is encouraging credit unions to actively promote the benefits of direct deposit.
The regulator is one of several agencies promoting the Department of Treasury's GoDirect campaign. In the aftermath of hurricanes Katrina and Rita, Treasury and the Social Security Administration worked tirelessly to distribute benefit checks to recipients who were displaced by the hurricanes, but those who were using direct deposit received prompt access to their payments, NCUA said.
"We have witnessed firsthand the value of direct deposit in areas devastated by last year's hurricanes," said NCUA Chairman JoAnn Johnson. "I encourage credit unions to incorporate direct deposit as part of their disaster recovery plans in view of our experience from last year."
Across the United States, approximately 12 million citizens continue to receive federal benefit payments by paper check, according to Treasury. Several credit unions have already signed on with the agency's GoDirect campaign.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.