UC & Credit union payments

We have a number of clients whose benefits are paid into their credit union account. New claimant was told that her
UC could not be paid into the CU and that she would need to open another bank account. She queried this and was eventually told that her first payment could go into her account but future payments would have to be made into another account because of ‘change in the rules’. Have I missed something?

As long as the credit union functions as a clearance bank I don’t see any issues. Various credit unions differ in their operating functions, but they can chose to approximate the functions of a ‘normal’ bank, and if this was the case I don’t see why UC couldn’t be paid into the account.

Maybe someone at UC is unfamiliar with credit unions and has confused it with a post office account?