April 20, 2020 — When Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act three weeks ago, the bill included some much-needed economic support. For millions of Americans that is coming in the form of Economic Impact Payments of up to $1,200 for qualified individuals and additional dollars for households with children.
The first waves of these payments are being issued to people who have direct deposit information on file with the Internal Revenue Service or Social Security Administration.
Other qualified Americans will receive hard copy checks over the next several months.
While almost $150 billion has already landed in the hands of working families, not all eligible consumers have received their funds.
The delay is caused by an overwhelming volume of payments for the U.S. Treasury to distribute, and the effective dates the Treasury set on the payments. For example, while the Treasury announced the first wave of payments would be deposited into accounts April 13, the effective date set was April 15. The Treasury processed another wave of payments Friday, but the funding won’t likely post to consumers’ accounts this Monday, because the effective date is not until April 22.
The confusion between when payments are issued, vs. when the funds are actually posted to consumers’ accounts is frustrating. But the good news is, the payments are coming.
Consumers expecting Economic Impact Payments should verify the funds are indeed posted to their accounts before they attempt to spend the money.
While financial institutions cannot change the government’s process, credit unions have other services that may help their members who are impacted by COVID-19. If your finances are taking a hit, talk to your credit union about options such as low-to-no interest emergency loans, modifications to your existing loans to make payments more affordable, and options to skip payments for a period of months on consumer, auto, and mortgage loans. Your credit union wants to come out of this with you, stronger than ever.
The Northwest Credit Union Association is the trade association representing more than 175 not-for-profit, cooperative credit unions in Idaho, Oregon, and Washington, and their 7.3 million consumer members.