Michigan Promotes Open Accounts for Electronic Payments Access

MI DIFS Press Releases

Published January 29th, 2026

Detected March 18th, 2026

Summary

The Michigan Department of Insurance and Financial Services (DIFS) is reminding residents to establish bank accounts as the federal government phases out paper checks for payments like tax refunds. DIFS promotes the Michigan Open Account Coalition (MOAC) to help consumers find low- or no-cost banking options.

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What changed

The Michigan Department of Insurance and Financial Services (DIFS) issued a press release on January 29, 2026, reminding Michiganders about the federal government's phase-out of paper checks for payments, including tax refunds. The notice emphasizes the importance of having a bank or credit union account for electronic payments and promotes the Michigan Open Account Coalition (MOAC) as a resource for finding low- or no-cost accounts.

Regulated entities, particularly financial institutions participating in MOAC, should be aware of this ongoing initiative to promote financial inclusion. While this is a consumer-facing reminder and not a new regulation, it highlights the shift towards electronic payments. Consumers are directed to MOAC for assistance in opening certified accounts that meet specific low-fee standards. DIFS also provides a consumer hotline and online complaint portal for unresolved issues with financial institutions.

Source document (simplified)

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

January 29, 2026

Media Contact: DIFS-press@michigan.gov
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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