Photo courtesy of dno1967 on Flickr!
The United States Department of the Treasury has some news for anybody who receives government benefits: you won’t be getting anymore checks!
Just kidding! Sort of.
You’ll still be getting your benefits, but in a different form. According to the White House’s Office of Management and Budget:
all payments from the US Government [will be delivered] to consumers electronically, thus eliminating the need for paper checks for all benefits payments.
In simple terms, all this means is that instead of our grandparents receiving Social Security checks in the mail, they will find the money directly deposited into their checking or savings account. The new policy applies to all government benefits, although the IRS is exempt – so I guess you can continue to receive a paper refund check if you’d like.
For those without bank accounts (???), a debit card will be provided. This is also helpful because people without checking accounts often go to those sleazy check cashing places that charge crazy fees just so you can receive your own money. Why do people go to these places? Honestly, I have no idea. They don’t know any better? They don’t trust banks?
There is something I’m wondering about however…
What the hell took so long? I don’t understand why this change wasn’t made years ago. It’s so simple with no significant downside. I know government (like any large organization) can move slowly, but come on! This was an easy switch and it’s not like direct deposit is new. 85% of those receiving benefits already made the switch years ago, so clearly there aren’t many, if any, problems with the system.
P.S. For those of you who are already receiving benefits, but love government waste and harming the environment: You won’t be forced to provide direct deposit information or use the debit card until 2013.
Are there any negative consequences I haven’t thought of?
{ 2 comments… read them below or add one }
I think this is an excellent idea, especially since they also provide the debit card option. (Although, wouldn’t people be getting the debit card through the mail?)
Haha, yes, I suppose so. But people will only be receiving a debit card once (or every few years since they expire), so it’s still better than paper checks.