Digital Dilemmas for Social Security Deposits

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"In the worst cases, Social Security recipients run out of money before the end of the month, and borrow cash from payday lenders, who then extract interest and fees directly from the recipient's Social Security direct deposit account."
This is false. State regulations require payday lenders to hold a customer's personal check thus preventing the scenario described above. Furthermore, while state regs typically allow a payday lender to ACH a check after the due date has passed, most have strict requirements and limits on the ACH process. (i.e. Florida will allow a check to be ACH'd on a past due account only one time. In Kentucky, a check can only be ACH'd after it has been deposited and returned NSF.)
Payday loans are quick, convenient, require no collateral or membership and are cheaper than an NSF charge and people choose to use them over less desirable alternatives.

Mick of IN 3:04PM August 03, 2010

Third-party issues, while important, are not the prime issue of concern. Of far greater concern is the government's insistence on doing away with the paper check form of payment. Millions of recipients have chosen, for whatever reason, to receive their benefits this way. There is absolutely no good reason for this to change. Treasury has spent tens of millions of dollars over the past six years trying to convince check recipients to change to direct deposit or debit card for payment. These efforts have failed miserably, as the percentage receiving electronic payment has held steady at 80 to 81% during that time period. Let people make their own choices as to how they are paid.

Bob of NV 9:26AM August 03, 2010