A number of All-RISE check payments and direct deposits are facing snags due to application errors.
According to Department of Administration director Edward Birn, a number of applications have incorrect information and got rejected by the bank.
“What happened was we got a lot of incorrect information in the direct deposit file. When the file got uploaded, it got rejected by the bank. And like many other such files, if one is rejected, it effectively rejects the whole batch,” Birn said in an interview with NewsTalk K57’s Patti Arroyo.
Birn said they had to go back through the bank, trying to correct what they could, but it mostly depended on the Department of Revenue and Taxation because DRT is the one that has the information on the taxpayers and the applicants.
Birn said they also received a lot of return checks that have come back as a result of the application errors.
“Those are missed payments, too, and we’ll publish the list on our website. We really want to get them in people’s hands. It doesn’t do much good having either a check or a return direct deposit sitting around,” Birn said.
He added that it’s not a technical issue because effectively, 90 percent of the information that’s provided is correct. It’s the 10 percent that’s wrong and that stops the whole process.
“A bank account basically has two elements — a bank routing number that identifies the bank and an account number that identifies your individual account. Some of the information provided had the same number for both elements. Obviously, that’s going to get rejected. Some had accounts that didn’t match the recipient’s name and it’s a bank rule that this gets rejected. So it’s those kinds of errors that cause this. It’s not a technical error because, as I said, most of the deposits actually are correct,” the DOA director said.
Under banking rules, Birn said that if the erroneous entries aren’t corrected, the whole system gets suspended.
“So we’re doing our best to correct the information because we pay other things too by direct deposit or electronic fund transfer (EFT). We pay our vendors by EFT, we pay our employees by EFT. So we really don’t want to have the whole system suspended so we do our very best to fix it,” Birn said.