Statement of Joseph Coleman, Chairman, Financial Service Centers of America: Electronic Delivery of Government Payments Poses Significant Burdens to Those Consumers Least Able to Afford Additional Expense of Such Options

WASHINGTON, April 17, 2012 /PRNewswire/ -- "While the U.S. Department of the Treasury has made clear its plans to migrate all remaining Social Security and other federal benefits checks to electronic delivery methods by March, 2013, moving forward at this time is contrary to the wishes of millions of Americans. In fact, Treasury knows this first hand.

"In 2011, Treasury reached out to 800,000 low-income earners in a pilot program to deliver income tax refunds via prepaid cards.  Despite various incentives offered, less than one percent of these consumers signed on, and the pilot was suspended in October, 2011.  These consumers sent a clear message of rejection to the federal government as the electronic delivery options failed to meet their financial needs.

"If Treasury moves forward with this plan now, seven million Americans who continue to choose to receive Social Security benefits each month via paper check, over the electronic options available, will suffer.  The low cost and convenience of their monthly benefits check far outweighs the many logistical burdens that will be forced upon them by this government mandate.  The needs of these consumers must not be overlooked in this cost-savings initiative. Treasury must take the necessary measures to preserve the financial rights of all consumers to choose, without penalty, how they receive the government benefits to which they are entitled."

About FiSCA
FiSCA, founded in 1987, is the national trade association for more than 6,500 individual financial service centers across the United States. FiSCA members provide a wide variety of financial services and products to their communities, including check cashing, money orders, money transfers, and electronic bill payment services, automatic teller machine access, government benefit and payroll payments, small dollar short-term loans, electronic tax preparation, prepaid debit cards, deposit acceptance services, public transportation fare and token sales, motor vehicle license plate and title distribution, postage stamp sales and numerous other services. For more information, please visit www.fisca.org.

SOURCE Financial Service Centers of America