You know how we've been hearing that the federal government is banning all check payments, and that social security and another government payments recipients must receive their benefits electronically? Everyone's been taking those threats seriously, especially Western Union.
The 1996 law states that January 1, 1999 is the deadline for benefits recipients to receive check payments but the Treasury says they've planned to offer waivers all along. (See issue 97:11:01) Unfortunately, it wasn't decided exactly who was to receive waivers nor were many recipients aware of the waivers. Therefore, many were led to believe they had to receive benefits electronically, or lose them.
So, Western Union Financial Services, Inc. (a subsidiary of First Data Corp.), through salespeople and sales materials, informed prospective customers that beginning January 1 the government would require electronic transfers. Therefore, those who did not have a banking relationship would lose their benefits. But, they could maintain their benefits by electing to sign up for Western Union's Benefits Quick Cash which would transfer their benefits to a Western Union account for a $4 sign up fee and $7.50 per transaction.
Since then, Western Union has mailed letters stating, "You may have seen or heard statements by Western Union or others suggesting that your benefit payments might be delayed or withheld after January 1, 1999 unless you sign up to have your payment directly deposited to a bank or other federally insured financial institution. THIS IS NOT CORRECT." The letters also allow those who signed up to cancel the agreement and have their fees refunded.
For information about Western Union access http://www.westernunion.com
