Latest news with #DirectExpress
Newsweek
20 hours ago
- Business
- Newsweek
Social Security Alert Issued About Big Change Coming This Fall
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The Social Security Administration (SSA) issued a new alert on Monday about its plan to discontinue issuing paper checks for benefit payments starting September 30. It marks a major shift in how millions of Americans will receive their Social Security, Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI) benefits. Why It Matters Transitioning to electronic payments carries significant implications for benefit security and government efficiency. Electronic Funds Transfers (EFTs) process payments more quickly and securely than mailed paper checks, which the SSA found are 16 times more likely to be lost, stolen or tampered with. The cost difference is notable: Issuing a paper check costs about 50 cents compared to less than 15 cents for an EFT. The transition could save the government millions of dollars each year. A Social Security Administration office in Washington, D.C., on March 26, 2025. A Social Security Administration office in Washington, D.C., on March 26, 2025. SAUL LOEB/AFP via Getty Images What To Know The shift to digital payments follows federal concerns over fraud and theft involving paper checks, which spiked during the COVID-19 pandemic. An executive order signed by President Donald Trump on March 25 mandated a government-wide move to fully digital payments in response to the risks. Nearly 500,000 Social Security recipients still receive monthly benefits by paper check. The SSA has emphasized that most beneficiaries already use electronic payments, but those who do not must enroll in a digital option—either direct deposit or the Direct Express debit card—to maintain timely benefit delivery after the cutoff date. "There are two key reasons for this change: efficiency and fraud prevention," Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek. "Digital payments streamline the distribution process, cut down on mailing costs, and reduce the potential for delays or errors while by using secure electronic payment methods, the SSA can better ensure that benefits are delivered directly to the intended recipients, reducing the risk of theft or misdirected funds." Beneficiaries who currently receive paper checks are being contacted directly by the SSA and provided guidance on how to switch to electronic payments. The agency is including informational inserts in existing paper checks, running outreach efforts, and making staff available for assistance. Recipients can update payment methods by enrolling in direct deposit with their financial institution or applying for a Direct Express prepaid debit card, which is designed for those without bank accounts. The SSA also advises recipients to remain vigilant against fraud. SSA and Treasury Department officials underscored that neither agency will ever request payment to expedite or set up benefits. Individuals facing hardship or without access to digital payment methods can apply for exemptions, which are reviewed on a case-by-case basis. Newsweek reached out to the SSA for comment via email. What People Are Saying Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek: "This move is not without challenges. Many individuals who still receive checks may lack access to digital tools or may not feel comfortable using them. These are often the same people who may be most vulnerable during the transition." Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "This change to Social Security is a logical one. Less than 1 percent of current recipients receive their benefits through a paper check. Direct deposit is less expensive to implement and more efficient in preventing fraud, so this switch should save money of the program while also cracking down on some efforts to illegally use fund distribution through paper checks." What Happens Next The SSA is on track to complete the migration to an all-electronic benefits system by September 30. Beneficiaries are encouraged to keep their contact details up to date at and follow official guidance as the transition progresses. Additional exceptions may be considered for those with extreme barriers to digital access, but the agency's goal remains to modernize payments for improved security and service. "In the long term, the shift to digital payments is expected to enhance security, lower costs and improve overall efficiency across the Social Security system," Thompson said. "But short-term success is ultimately dependent on how well the process fundamentally works without disruption."
Hindustan Times
27-05-2025
- Business
- Hindustan Times
SSI schedule changed for May-June payments in 2025
The Supplemental Security Income (SSI) schedule for June 2025 payments has been slightly changed, because of which the deposit will be arriving on May 30. The two payments the beneficiaries will receive in May are not a result of overpayments on the part of the Social Security Administration (SSA) but due to June 1 being a Sunday. In such cases, deposits are delivered on the nearest business day to prevent beneficiaries from overdrawing their account. Funded by general taxes, the SSI program is meant to help retired, disabled, survivors, or individuals over 65 who have little to no income or resources to live by. This program is notably different from other initiatives of the SSA such as Social Security Disability Insurance. Program rules prohibit dual monthly disbursements which could hamper eligibility for other assistance programs. Since shifts in deposit timings can affect other eligibility thresholds, scheduling changes require careful coordination in the payment calendar. 'No one is losing funds; it's a scheduling change,' said an SSA official in response to concerns that the shift in deposit date might reduce total annual funds received by beneficiaries. Officials clarified that the May 30 payment will serve as the beneficiaries' June benefit. The SSA announced an adjustment in payments for three months i.e. March, June, and November at the start of the year due to calendar clashes. These deposits are due on February 28, May 30, and October 31 respectively. The SSI program places a maximum limit on benefits that can be drawn by individual and spousal beneficiaries. According to the official website, 'The maximum monthly SSI payment for 2025 is $967 for an individual and $1,450 for a couple. Your amount may be lower based on your income, certain family members' income, your living situation, and other factors.' $1 is deducted for every $2 a beneficiary earns from work. Around $1 is also deducted for every $1 of income received through non-work sources such as disability benefits, unemployment payments, or pensions. Income received by a spouse or parent of a child who falls under SSI may impact the amount received. 'If you live in someone else's home and don't pay your fair share of food and shelter costs, your SSI payment may be lowered by up to $342.33,' the website adds. Direct Express cardholders and paper check receivers will get the payment on May 30 itself. Electronic means, however, are considered to be faster and much more secure. The next payment is scheduled for July 1.
Yahoo
15-04-2025
- Business
- Yahoo
CFPB drops case against Comerica
This story was originally published on Banking Dive. To receive daily news and insights, subscribe to our free daily Banking Dive newsletter. The Consumer Financial Protection Bureau on Friday dismissed its case against Comerica Bank, without prejudice, meaning the bureau could refile the lawsuit. In March, the bureau had requested a 90-day stay in its lawsuit against Comerica, which was filed in U.S. District Court for the Northern District of Texas by the Biden-era CFPB. The bank, in turn, asked the judge to deny that request, which Judge Jane J. Boyle did March 10, saying the bureau had 'failed to explain how staying this case would be in the interest of justice,' and doing so presented a 'fair possibility' of harming Comerica. The bureau dismissing the case without prejudice stands apart from a handful of other dismissals by the CFPB under the second Trump administration, which have been done with prejudice, meaning the CFPB can't revive the lawsuits. The bank declined to comment. The CFPB didn't immediately respond to a request for comment Monday. Last month, the consumer watchdog had requested a stay in the case to give new agency leadership time to review the case, including its position on Comerica's motion to dismiss. In December, the CFPB – led by former Director Rohit Chopra – sued Comerica for allegedly 'systematically failing' 3.4 million federal benefits recipients who held Comerica's Direct Express prepaid cards with intentionally poor customer service and illegally harvested junk fees. The CFPB alleged the bank intentionally dropped some 24 million customer service calls with holders of its Direct Express prepaid card, and subjected callers who were not dropped to 'excessively long wait times — often in excess of several hours' to speak with a representative about unauthorized transactions, charge disputes, or lost or stolen cards. The CFPB also accused the bank of charging ATM fees to cardholders who were legally entitled to free withdrawals, mishandling complaints from consumers who said they had been fraudulently enrolled in the Direct Express program, and repeatedly failed to address complaints of fraud in an appropriate time period or provided 'vague and confusing findings' to potential fraud victims. That lawsuit came one month after Comerica sued the bureau, asserting the CFPB's investigation of the bank's handling of the Direct Express prepaid card program – which began in 2021 – was 'aggressive and overreaching.' The Dallas-based bank had argued a stay in the CFPB's 'meritless' lawsuit would 'prolong the reputational harm the Bank has been forced to endure,' and would give the CFPB an unfair advantage by allowing it about four months to craft its opposition brief to Comerica's motion to dismiss. Since President Donald Trump returned to the White House, the CFPB has dropped a number of lawsuits filed during the final months of the Biden administration. The bureau has dismissed lawsuits – all with prejudice – against JPMorgan Chase, Bank of America, Wells Fargo and Zelle parent Early Warning Services; against Capital One; and against SoLo Funds. The CFPB last month also asked a federal judge to vacate a settlement with Townstone Financial and return $105,000 to the mortgage firm. Last November, the Treasury Department named BNY as the financial agent for the Direct Express program, after the Treasury had informed Comerica it would be choosing a different program partner. BNY took over in January, but Comerica agreed to work alongside the New York City-based bank for three years to facilitate the transfer. Recommended Reading Comerica urges judge not to give CFPB more time on lawsuit
Yahoo
11-04-2025
- Business
- Yahoo
US consumer bureau dismisses case against Comerica Bank, filing says
By Pete Schroeder WASHINGTON (Reuters) - The U.S. Consumer Financial Protection Bureau on Friday dismissed its lawsuit against Comerica Bank, after the agency previously accused the lender of systematically mistreating millions of mostly disabled and older customers. In a filing submitted in U.S. District Court, the agency said it was dismissing the suit, which was filed in December under the Biden administration. The move is the latest in several enforcement actions the Trump administration has scrapped since taking over the agency. A spokesperson for Comerica declined to comment. A CFPB spokesperson said the agency was doing its due diligence to work with the bank. In its original suit, the CFPB claimed that the bank had failed participants in the "Direct Express" program by disconnecting customer service phone calls and charging illegal fees. The program has operated since 2008 under a U.S. Treasury contract with Comerica to provide prepaid debit cards to recipients of federal benefits, the agency said. Since taking over the CFPB, the Trump administration has sought to dismiss, freeze, or reverse several high-profile cases pursued by predecessors. In March, a federal judge ordered the Trump administration to halt its efforts to defang the watchdog, after a worker union and consumer advocates sued to prevent what they warned were planned mass layoffs and other efforts to effectively dismantle the agency, which was authorized as part of the 2010 Dodd-Frank financial reform law and charged with policing consumer financial products. Sign in to access your portfolio
Reuters
11-04-2025
- Business
- Reuters
US consumer bureau dismisses case against Comerica Bank, filing says
WASHINGTON, April 11 (Reuters) - The U.S. Consumer Financial Protection Bureau on Friday dismissed its lawsuit against Comerica Bank, after the agency previously accused the lender of systematically mistreating millions of mostly disabled and older customers. In a filing submitted in U.S. District Court, the agency said it was dismissing the suit, which was filed in December under the Biden administration. The move is the latest in several enforcement actions the Trump administration has scrapped since taking over the agency. A spokesperson for Comerica declined to comment. A CFPB spokesperson said the agency was doing its due diligence to work with the bank. In its original suit, the CFPB claimed that the bank had failed participants in the "Direct Express" program by disconnecting customer service phone calls and charging illegal fees. The program has operated since 2008 under a U.S. Treasury contract with Comerica to provide prepaid debit cards to recipients of federal benefits, the agency said. Since taking over the CFPB, the Trump administration has sought to dismiss, freeze, or reverse several high-profile cases pursued by predecessors. In March, a federal judge ordered the Trump administration to halt its efforts to defang the watchdog, after a worker union and consumer advocates sued to prevent what they warned were planned mass layoffs and other efforts to effectively dismantle the agency, which was authorized as part of the 2010 Dodd-Frank financial reform law and charged with policing consumer financial products.
