In the midst of the ongoing national emergency and after the passage of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), NAFCU has received some questions from its member credit unions regarding the direct payments eligible members will receive via direct deposit or check as part of the relief measures in the act.
The CARES Act provides for a $1,200 stimulus check to adults earning up to $75,000. Couples earning up to $150,000 may receive $2,400. This is based on 2019 adjusted gross income (or 2018 AGI if a person has not yet filed a 2019 tax return). In addition, eligible families receive an additional $500 for each child under the age of 17. People with higher incomes may receive smaller rebates. This blog addresses two of the most common questions credit union are asking regarding processing these payments for their members.
Can a Federal Credit Union Allow its Members to Deposit US Treasury Checks via Remote Deposit Capture (RDC)?
While we are not aware of any regulation or guidance addressing this, it may be a contractual issue. We understand that some RDC agreements prohibit the deposit of US Treasury checks via RDC. Credit unions may be able to modify their RDC agreements to allow for this type of check to be deposited to avoid requiring member to come to a branch to deposit the funds.
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