U.S. Treasury and Federal Reserve Kick Off Direct Deposit Campaign
in Houston
"Go Direct" Campaign To Promote Direct Deposit
Among Social Security and Supplemental Security Income (SSI) Beneficiaries
November 18, 2004 -- The U.S. Department of the Treasury and
the Federal Reserve are launching a pilot campaign in Houston aimed at
increasing direct deposit use among people who receive Social Security
and other federal benefits. The grassroots campaign -- called Go
Direct (in Spanish, Directo A Su Cuenta) -- will
kick off with a meeting today of local banking and community organizations,
which will identify ways to reach Houston's high concentration of residents
receiving benefits through the mail and help them enroll in direct deposit
-- a safer, easier payment alternative.
More than 25 percent of Social Security and SSI payments in Houston
are still sent by check, compared with a national average of 22 percent.
Converting all of Houston's approximately 106,000 check payments to direct
deposit could save taxpayers more than $65,720 each month, or $788,640
annually.
"Without a doubt, electronic payments are superior to checks in terms
of safety, speed and convenience," said Don Hammond, Treasury Fiscal Assistant
Secretary. "Houston residents who still use checks would benefit greatly
from direct deposit. The response to our grassroots outreach to date has
been very encouraging. Our teams are excited about the opportunity to
talk with check recipients about enrolling in direct deposit so that they
can take advantage of its many benefits."
Despite its advantages, the growth rate of direct deposit has diminished
in recent years. Many Americans still receiving checks are elderly, disabled
or low-income individuals who would benefit most from direct deposit.
There are three benefits the campaign seeks to communicate about direct
deposit:
- It's safer. Direct deposit protects people from fraud and
identity theft. In fact, no direct deposit payment has ever been lost
or stolen.
- It's easier and more convenient. Direct deposit saves people
a trip to the bank or check cashing store -- their money is already in
their account when they need it.
- It gives people more control over their money. Direct deposit
is completely predictable -- people know they'll have their money at the
same time each month to pay bills.
More than 30 Houston-area organizations are expected to participate
in today's launch meeting, including Guaranty Bank, Laredo National Bank,
Sterling Bank and the YWCA of Houston. "The YWCA of Houston is excited
to be involved in Go Direct," said Mary Mayfield, Director
of Senior Services. "By encouraging our constituents to direct deposit
their federal benefits, we're helping them get more control over their
money and make their lives a little easier."
Besides Houston, Go Direct will focus on Austin, Dallas,
and San Antonio in Texas; Chicago and Springfield in Illinois; Knoxville,
Memphis and Nashville in Tennessee; and all of Puerto Rico
Go Direct has established websites in English and Spanish, www.GoDirect.org,
and www.DirectoASuCuenta.org,
and toll-free numbers to help people sign up for direct deposit: 1-800-333-1795
(English) and 1-800-333-1792 (Spanish).
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