Ways and Means Democrats: EIP Cards May Be Causing Confusion

May 28, 2020

The Honorable Steven T. Mnuchin
Secretary
U.S. Department of the Treasury
1500 Pennsylvania Avenue, NW
Washington, D.C. 20220

Dear Secretary Mnuchin,

We write regarding the recent announcement that the Department of the Treasury (Treasury) began sending economic impact payments (EIPs) to an estimated four million individuals by prepaid debit card.

Ensuring timely and accurate EIP distribution is a priority, especially given the economic pressures of the COVID-19 pandemic. Treasury recently stated that these cards are “secure, easy to use, and allow [Treasury] to deliver Americans their money quickly.” However, recent reports indicate the cards are creating confusion and actually may delay when Americans receive this emergency assistance.

In the last week, there are reports that taxpayers are confused by the EIP prepaid debit cards and are concerned that they are scams. For starters, the cards arrive in a plain white envelope from “Money Network Cardholder Services,” which is not a name that taxpayers recognize. Further, there is no indication on the envelope or the card itself that it is an EIP or that it comes from Treasury. Alarmingly, if an individual calls the number listed in the accompanying materials, the activation line requires the individual to enter a substantial portion of his or her Social Security number.

When added together, these facts are leading many individuals to believe that the debit cards are junk mail or a scam. Indeed, the Iowa Attorney General noted in a recent article that the office is getting “lots of calls” from people thinking the cards arriving in the mail are a scam. This is particularly concerning because many taxpayers may be discarding or destroying their EIPs upon receipt, and it is unclear what recourse they will have subsequently to access their payments with or without additional fees.

In light of these concerns, we request that you please provide the following information by June 2, 2020:

Sincerely,

The Honorable John Lewis, Chairman
Subcommittee on Oversight

The Honorable Suzan K. DelBene

The Honorable Linda T. Sánchez

The Honorable Thomas R. Suozzi

The Honorable Judy Chu

The Honorable Gwen Moore

The Honorable Brendan F. Boyle