Over 600,000 Californians eligible for pandemic relief funds from the Middle Class Tax Refund.
600,000 Californians Haven’t Activated Prepaid Debit Cards Worth $200-$1,050
Over 600,000 low to moderate-income Californians have not used their pandemic relief funds which remain unactivated on prepaid debit cards. These funds range from $200 to $1,050, according to the report of Los Angeles Times.
The Middle Class Tax Refund was a grant from California’s budget surplus to help with high living costs, not a refund. Anyone who filed their 2020 state tax return on time and earned below certain income thresholds qualified.
From October 2022 to February 2023, the state distributed $9.2 billion to 16.8 million taxpayers. While 7.2 million households received direct deposits, 9.6 million were sent prepaid debit cards.
(photo: ABC7 News)
Middle Class Tax Refund: Unspent Cards, Fraud Concerns, and Reimbursement Options – Update and Tips
By April 8, more than half of these cards were still unspent, with 624,000 unactivated, leaving millions unused on these cards.
Many recipients couldn’t be located due to outdated addresses or discarded the cards thinking they were scams. Some, like Keith Ensminger from Merced, were skeptical of the cards.
Eligible people who haven’t received their card should update their address with the FTB and can call Money Network to check the status of their card.
Some cards have been hacked, leading to stolen funds. Despite a low fraud rate, many households have been affected. A class-action lawsuit against Money Network was dismissed.
Victims of unauthorized charges can be reimbursed by reporting the issue to Money Network. To protect funds, cardholders can transfer balances to their bank accounts or lock the card using the Money Network app.
Furthermore, while the Middle Class Tax Refund provided substantial financial relief, much of it remains unused due to mistrust and fraud issues. Efforts are ongoing to help eligible Californians access and secure their funds.
