Monday, August 02, 2021

The Long Slow Progress of Direct Deposit

Been 25 years or more since FSA started pushing direct deposit (it was just starting back in the mid 90's before I retired)  According to the notice about 82 percent are now direct deposit/ Since I retired they've come up with a waiver provision, presumably for hardship, but only 5 percent of the paper check people have a current waiver on file.  

It seems that it's still the producer's option--she "invokes" the waiver for one of the three permissible reasons, there's no burden on the FSA to determine the validity. I'm curious whether compliance with the requirement is greater among the other agencies which issue payments to the public. Somehow I expect farmers to be more resistant to the change.

Might have helped to sell the idea to note that having direct deposit makes it easier and more foolproof to get benefits issued by IRS, as has happened now several times this century.

Of course the answer is for everyone to get a basic bank account with fees paid by the government, but that would be against the American individualistic ethic, so a nonstarter.

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