NCUA Urges CUs, Members To Go Direct

Register now

NCUA joined other financial regulators in a Treasury promotion aimed at encouraging people to receive their federal benefits through direct deposit.

While the latest campaign, dubbed GoDirect, was timed to coincide with the onset of hurricane season in the southeast, the Treasury Department has been working for at least the past decade to transfer as many federal payments from paper to electronic. The transfer, as Treasury points out, saves the federal government on costs and time and ensures for greater accuracy in making the payments, and provides more timely and accurate payments for recipients.

The massive disruptions in mail and other traditional communications following last year's hurricanes Katrina and Rita reemphasized the benefits of the electronic payments.

"Direct deposit is a practical way for Americans to protect their financial well being," said NCUA Chairman JoAnn Johnson, during a ceremony at the Treasury Department. "We learned from last year's hurricanes that it is important for members to have access to federal benefit payments and other financial service in the event of being displaced by a hurricane."

NCUA issued a letter to credit unions promoting the Treasury's latest efforts and touting the benefits of direct deposit.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER