Tax refund debit cards continue to confuse

Hartford, Conn. (WTNH) -- Many of you may have noticed that your state tax refund didn't come in the form of a check this year, and that new policy has many people confused.

One man says every year his refund check would come to his mailbox, but now it's a debit card. He has read the fine print and warns everyone they could end up paying fees.

"I want my cash," said George Voebel, of Plainfield. "I received a check last year, I want that."

Instead, he got his refund in the form of a debit card issued by Chase bank.

For the first time, the state is not issuing checks for refunds under $5,000. Instead, taxpayers will get the debit card.

Voebel is worried about possible fees, especially an inactivity fee.

"There are hidden fees you accept for yourself when you enroll into the card," said Voebel.

Revenue Services Commissioner Kevin Sullivan admits the debit cards have caused confusion, adding more could have been done informing the pubic about the switch.

Sullivan says fees should only occur using cards at certain ATM's and if the refund sits untouched.

"We've dealt with a lot of people to straighten out a few cases where there has been misunderstandings at the banks," said Sullivan, "but those are the only cases really where anyone should be seeing a fee. If they are getting it in other circumstances they should be calling Chase, they should be calling us."

Voebel says he will not activate the card and will continue to fight to get a check mailed to him.

• The Dept. of Revenue Service commissioner says the department is seeing a major increase in the number of tax filers choosing direct deposit as a result of the switch to debit cards.

• The commissioner's advice to taxpayers is to activate and take the funds out of the account as soon as get your debit card.

• If money is left in the account or the refund is not ever touched, after 365 days there could be fees. The department will be sending out notices warning of such to taxpayers in the Fall so they can take action and avoid any fees.

• The commissioner says the cards save the state $300,000.