GOP congressmen concerned about Treasury debit card program

In a letter to Treasury Secretary Timothy Geithner, Reps. Dave Camp of Michigan, the Ways and Means chairman, and Charles Boustany of Louisiana, chairman of the panel’s Oversight subcommittee, wrote that they are concerned about oversight for the program and about fees that might be attached to the debit cards. (News outlets have reported that some of the cards would come with a $4.95 monthly charge.)

The letter asks for information by Feb. 3 on, among other things, the program’s implementation schedule, how the program’s participants were chosen and a description of all fees and charges participants might face.

Treasury said it was moving forward with the program earlier this month, saying it would offer additional protections for those with limited to no access to bank accounts. The department also said direct deposit costs the federal government a fraction of the price of mailing out paper checks. 

In a release, Neal Wolin, deputy Treasury secretary, said the debit cards could be used to pay bills, collect paychecks and build savings, “giving users more control over their financial futures.”

According to the lawmakers’ letter, that description left Camp and Boustany concerned that what had been an effort to reduce the use of paper checks had “morphed into an effort to establish ongoing bank accounts for low-income taxpayers.” 

“Since the financial industry is already competitive (with banks and credit unions actively pursuing new account holders), we question the wisdom of the federal government becoming so involved in the financial affairs of individual taxpayers,” Camp and Boustany wrote.