7 On Your Side FAQ: Answers to the most commonly asked Middle Class Tax Refund questions
Some recipients are wary because you must give six digits of your Social Security number to activate the card, which sets up an account at a New York bank. The card company is located in Wisconsin and their customer service is in Georgia -- so, who's got your information and what happens to it?
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Al Ginsburg of San Francisco got his Middle Class Tax Refund loaded on a debit card, but he refused to activate it. "What do I do with this card?" he asked.
"You look on the back, it says call this number and give away six digits of your Social Security number," Ginsburg said.
Ginsburg says a scammer could use those six digits to steal his identity.
"Even a cave person could figure out how to do that, so it's not safe. So the idea is, don't use this card," he said.
Activating the card automatically opens an account at New York Community Bank -- which sent a notice along with the debit card. saying it does share information.
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Confused about using your CA Middle Class Tax Refund debit card?
"They're gonna get our purchasing history as we use these cards, so this is all big business back there, and with my tax money and my numbers and my purchasing behavior," Ginsburg said.
He's not alone. Scott in San Jose writes: "I don't want an account at a New York bank -- how can I avoid it?"
Rolanda writes: "Do I either accept a bank's access to my information... or don't get a refund?"
"Who made the decision from our government in Sacramento? They couldn't find a decent bank in California?" asked Ginsburg.
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The Franchise Tax Board is paying $25 million to Money Network of Wisconsin to provide debit cards for up to 13 million Californians. The New York bank issues the cards, with customer service department located in Georgia.
"I mean, you just lost control, put it on a silver platter." Ginsburg has vowed not to provide the six digits of his Social Security number.
However, he was shocked when we pointed out the companies already had his Social Security number. They also had his name, address and refund amount.
"How did they get all that personal information, who gave it to them?" he asked.
The state of California turned over data for millions of Californians so the companies could issue the cards and mail them out.
"The state of California? My government?" asked Ginsburg.
Money Network requires you to punch in six digits to verify you are the real cardholder, and not a scammer.
"This is absolutely a bonfire. It's a bonfire," said Ginsburg.
The Franchise Tax Board says debit cards are by far the fastest way to send money to millions of residents. Checks would take six months longer.
As for privacy concerns, the contract says the companies will not use your personal information for marketing purposes, despite the standard privacy notice saying New York Community Bank can share it. The account will also dissolve once you use up the funds, so you are no longer a customer.
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Ginsburg took no chances. He called Money Network, which canceled his card and is now sending a check.
"Tell them you're not a robot and you're not a moron and you want a paper check," he said.
That's also in the fine print of the contract: you can call Money Network to cancel the card and it will send you a check. It takes a few weeks to get it. If you have issues with your debit card, let 7 On Your Side know about it.
Take a look at more stories and videos by Michael Finney and 7 On Your Side.
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