DIFS Promotes MI Open Accounts to Ensure Electronic Payments Access for Michiganders as the Federal Government Phases Out Paper Checks

Media Contact: [email protected]
Consumer Hotline: 877-999-6442, Michigan.gov/DIFScomplaints

FOR IMMEDIATE RELEASE: January 29, 2026

(LANSING, MICH) - With tax season around the corner, the Michigan Department of Insurance and Financial Services (DIFS) is reminding Michiganders that now is the time to establish a relationship with a bank or credit union, as the federal government will issue tax refunds electronically after phasing out paper checks last year. Having an account with a financial institution is essential for accessing electronic payments. If you are in need of an account, the Michigan Open Account Coalition (MOAC) can assist you in finding low- or no-cost options.

"The U.S. Treasury stopped issuing paper checks to taxpayers last year, making direct deposit through bank or credit union the easiest way to receive payments, like tax refunds, from the federal government," said DIFS Director Anita Fox. "Michiganders without an account at a financial institution can open a low- or no-cost account and set up direct deposit to receive electronic payments through the Michigan Open Account Coalition, which are available at nearly 40 financial institutions across 67 Michigan counties."

The federal government has released a Fact Sheet about the paper checks phase out with more information for consumers about impacted transactions.

For Michiganders looking to open an account, MOAC offers certified low- or no-cost accounts with branch locations across 67 Michigan counties. According to data from the Bank On National Data (BOND) Hub, MOAC account holders reside in every county in Michigan, though, and access their financial services online where branches are unavailable. For more information on opening an account and a list of participating institutions, visit Michigan.gov/DIFSOpenAccount.

All MOAC accounts are certified by the Cities for Financial Empowerment (CFE) Fund, and follow the CFE's National Account Standards which includes:

• No overdraft, account activation, closure, dormancy, inactivity, and low balance fees
• Limits on ATM fees (no fees in-network; $3 or less out-of-network)
• A limit on minimum opening deposits ($25 or less)
• A limit on monthly maintenance fees ($5 or less)

MOAC was formed in 2022 by DIFS, the Michigan Bankers Association, Michigan Credit Union League, and community organizations. Its mission is to encourage relationships between financial institutions and historically underserved communities, to educate consumers about the importance of having a relationship with a financial institution, and to promote the availability of, and access to, consumer financial accounts with low and transparent fees.

Consumers who have questions or disputes that cannot be resolved directly with their financial institutions can contact DIFS Monday through Friday 8 a.m. to 5 p.m. at 877-999-6442 or file a complaint online at Michigan.gov/DIFScomplaints.

The mission of the Michigan Department of Insurance and Financial Services is to ensure access to safe and secure insurance and financial services fundamental for the opportunity, security, and success of Michigan residents, while fostering economic growth and sustainability in both industries. In addition, the Department provides consumer protection, outreach, and financial literacy and education services to Michigan residents. For more information, visit Michigan.gov/DIFS or follow the Department on Facebook, X, or LinkedIn.

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