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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> Action Agenda <br /> Item No 5-0_ <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: January 21, 1997 <br /> SUBJECT: A Resolution recommending the creation of a state task force and education program <br /> to address the implementation of the direct deposit mandate. <br /> DEPARTMENT Aging PUBLIC HEARING YES NO X <br /> Adv. Board on Aging BUDGET AMENDMENT YES NO X <br /> ATTACHMENT(S): INFORMATION CONTACT: Jerry M. Passmore <br /> (1)Resolution TELEPHONE NUMBER: <br /> (2) Suggested Letter Hillsborough 732-8181 <br /> Chapel Hill 968-4501 <br /> Mebane 227-2031 <br /> Durham 688-7331 <br /> PURPOSE: <br /> To consider a resolution endorsing the need for greater planning for the implementation of the federal <br /> direct deposit mandate, effective January 1999. <br /> BACKGROUND: <br /> The Advocacy Sub-Committee of the Orange County Advisory Board on Aging presented information on <br /> the mandated federal direct deposit payment which will impact everyone receiving social security as well as <br /> current and retired federal employees. At its November 21, 1996 meeting, the Advisory Board established <br /> that very few plans have been made to consider the various ramifications to individual recipients. Many <br /> people in Orange County,North Carolina, and the country will most likely encounter a great deal of <br /> hardship and fraud if this is implemented without sufficient planning and preparation. Many people can not <br /> read or write, or even sign their names. Also, many people have never had any type of bank account and <br /> would be unable to manage one. For those who are home bound, accessing their funds might be a <br /> problem. People who ive in small communities with only one bank could possibly be assigned a bank <br /> elsewhere. <br /> The banks will earn a tremendous amount of interest from the time of deposit until the payments are <br /> credited to individuals' accounts. Currently $29 million is deposited monthly in the Orange, Durham, <br /> Granville and Person county area. It is anticipated that they will compete for the recipients' business by <br /> offering free accounts. Those without an account may be assigned a bank. In addition, an ATM type card <br /> may be used which can increase the chance of fraud for those whose pass codes become known which will <br /> allow access to their whole accounts, instead of a paper check. <br />