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Chairman Johnson Encourages Credit Unions to Promote Direct Deposit to Members

Letter to Credit Unions part of disaster preparedness initiative

June 8, 2006, Alexandria, Va. – National Credit Union Administration (NCUA) Chairman JoAnn Johnson issued a Letter to Credit Unions which raises awareness of the benefits of direct deposit and encourages credit unions to actively promote these services to their members, especially in areas which are traditionally affected by hurricanes.

“For several years, we have worked together with Treasury to encourage credit unions to promote the use of direct deposit,” said Chairman Johnson. “Not only is direct deposit an appreciated convenience for members, it also increases the security of financial data and identity. We have witnessed firsthand the value of direct deposit in areas devastated by last year’s hurricanes. I encourage credit unions to incorporate direct deposit as part of their disaster recovery plans in view of our experience from last year.”

Across the United States, approximately 12 million citizens continue to receive federal benefit payments by paper check, which increases the risk of interrupted payment in the event of an emergency. In the aftermath of hurricanes Katrina and Rita, the Treasury Department and the Social Security Administration (SSA) worked tirelessly to distribute benefit checks to recipients who were displaced by the hurricanes, but those who were using direct deposit received prompt access to their payments.

The letter to credit unions encourages credit unions to participate in Treasury’s GoDirect campaign which ensures that citizens will receive their federal benefits without interruption. Credit unions can partner with the GoDirect campaign and receive more information by visiting www.GoDirect.org and by calling toll-free: (800) 333-1795.

The National Credit Union Administration is the independent federal agency that charters and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government, operates the National Credit Union Share Insurance Fund (NCUSIF), insuring the savings of nearly 85 million account holders in all federal credit unions and many state-chartered credit unions. NCUA operations are funded by credit unions, not tax dollars.