Fed Delays Protections for Benefits Recipients

By Cummins, Claudia | American Banker, February 17, 1994 | Go to article overview

Fed Delays Protections for Benefits Recipients


Cummins, Claudia, American Banker


WASHINGTON -- The Federal Reserve Board voted reluctantly Wednesday to delay for three years a plan to bring government agencies that deliver benefits electronically under the same consumer protection and liability rules as banks.

Those provisions will take effect in 1997, giving individuals who receive welfare and other benefits through automated teller machines or other terminals the same anti-fraud protections as bank customers.

In allowing the delay, the Fed bowed to demands from the Clinton administration and other advocates of the delivery systems known as electronic benefits transfer, or EBT.

Expense Feared

Federal and state welfare and food stamp officials argued that without at least temporary regulatory relief, EBT systems would be too expensive to get off the ground. The Fed said the need for equal treatment, outweighed cost considerations.

"Under both the law and our concept of fairness, we could not afford different, and arguably lesser, rights to the poor, disabled and aged that were provided to the rest of the population," said Fed governor Lawrence B. Lindsey, who led the Fed's efforts on the plan.

He added, "We felt that it was wrong for government to impose one set of rules on the private sector and not live up to the same set of rules."

Despite holding firm on to its principles, the Fed did agree to an unusually long implementation period of three years. When the rules, incorporated in Federal Reserve Regulation E, originally took effect, banks had only 90 days to comply.

The controversy, which came to a head last year, created strange bedfellows. The Fed won support from consumer advocates and was battling state and federal government officials who complained that the regulations would be too costly.

Appeal by Gore

In November, Vice President Gore made a last-minute appeal to Fed Chairman Alan Greenspan to hold off a final vote on the plan until his office could consider it further. As part of his reinventing government initiative, the vice president strongly supported a nationwide system of developing government benefits electronically.

A series of meetings with the administration led to the delay approved Wednesday. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Fed Delays Protections for Benefits Recipients
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.