ALEXANDRIA, Va. – NCUA, in partnership with Treasury and other government entities, are working to spread the word about direct deposit and direct payment.
In a Letter to Credit Unions (06-CU-09), NCUA Chairman JoAnn Johnson wrote, "The convenience and safety offered through the direct deposit of federal benefits was especially demonstrated in light of last year's devastating hurricanes. Credit unions' active promotion of direct deposit should be part of the credit unions' disaster recovery plans in view of our experience last year.
"In those critical days following Hurricane Katrina, the Treasury worked with the Social Security Administration (SSA) to get displaced Social Security and SSI recipients their payments as quickly as possible. However, those who were already using direct deposit had immediate access to their funds from virtually anywhere, thanks to automated teller machines and financial institution networks." Despite government efforts, 12 million people still receive their federal benefits via paper checks.
Recommended For You
Johnson added, "Just as important, direct deposit eliminates the risk of stolen checks and forgeries and helps protect people from identity theft. Fraud and identity theft are growing concerns for all Americans, including those who receive federal benefits."
NCUA encouraged credit unions to promote direct deposit for all their members.
© 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.
