The purpose of this regulatory alert is to provide basic information to credit unions regarding Electronic Transfer Accounts (ETA). These accounts were created under 31 USC 3332, The Debt Collection Improvement Act, which requires the electronic payment of federal benefits. The Congress recognized that not all recipients of federal benefits have a relationship with a financial institution. As a result, the Department of the Treasury has developed a program to enable financial institutions to become providers of ETA accounts.
Credit unions may offer ETA accounts. The following information is provided to help credit unions decide whether to become such providers.
Norman E. D’Amours