WASHINGTON–Credit unions should begin watching for a new inflow of deposits—even if it’s just temporary—from members who are receiving paper checks from the federal government as part of the economic stimulus payments.
Those receiving paper checks are those for whom the federal government does not have information for electronic deposits. According to CUNA’s Lance Noggle, senior director of advocacy and counsel, the IRS is now printing between five and seven-million paper checks per week. Those checks are then being distributed via the U.S. mail.
Much like the electronic payments, the checks should average approximately $1,200, with an additional $500 per child under age 17, depending on an individual’s income.
As CUToday.info reported here, early on, as payments have been made electronically, many Americans have been still struggling to figure out what has become of their stimulus money. Some of those individuals may find an answer in a paper check.
The electronic payments are expected to continue for approximately two more weeks.
In all, it could take up to 10 weeks for the paper checks to process, said Noggle.
“This is something that should be watched carefully,” he added.