Mich. won't pay Xerox due to food stamp glitch - Fox 2 News Headlines

Mich. won't pay Xerox due to food stamp glitch

Posted: Updated:
  • Mich. won't pay Xerox due to food stamp glitchMore>>

  • Glitch temporarily shuts down Bridge Card system

    Glitch temporarily shuts down Bridge Card system

    Sunday, October 13 2013 4:51 PM EDT2013-10-13 20:51:21 GMT
    Low-income families across Michigan were not able to use Bridge Cards Saturday to purchase food because of a glitch that also caused problems in 16 other states. By Sunday, the system was back up and running.
    Low-income families across Michigan were not able to use Bridge Cards Saturday to purchase food because of a glitch that also caused problems in 16 other states. By Sunday, the system was back up and running.

LANSING, Mich. -- Michigan will withhold money from Xerox Corp. because a technical problem crashed the state's debit card-style food stamps program, a state spokesman said Tuesday.

People in 17 states from Alabama to California found themselves temporarily unable to use their food stamp cards on Saturday morning, after a routine test of backup systems by Xerox sparked technical problems that shut down the states' electronic benefit transfer, or EBT, systems. Xerox said access was restored for all users late that day.

Michigan is within its rights to withhold 15 percent of the October bill due to "vendor non-compliance," Department of Human Services spokesman Dave Akerly told The Associated Press.

The state's contract "requires Xerox-ACS to maintain 99.9 percent access, and they failed to meet this," Akerly said in an email.

The specific amount that won't be paid is unclear because Michigan hasn't gotten the monthly invoice yet. But if the tab is similar to the September bill, Xerox could lose out on $80,000.

"It depends, because each month the figures change based on transactions and usage," Akerly said. "We won't know the actual billable figure until Nov .1." He said the invoice for September was about $534,000.

The issue began after a routine test of backup systems by Xerox resulted in a system failure. The U.S. Department of Agriculture said the outage was unrelated to the government shutdown.  

An email message seeking comment was sent to Xerox spokespeople after business hours Tuesday. The company earlier expressed regret in a posting on its website.

"We appreciate our clients' patience while we resolved this issue and apologize for any inconvenience," the statement said. "We realize that access to these benefits is important to families in the states we serve. We continue to investigate the cause of the issue so we can take steps to ensure a similar interruption does not re-occur."

  • Local NewsLocal NewsMore>>

  • Fire from lightning strike devastates Roseville church

    Fire from lightning strike devastates Roseville church

    Tuesday, July 29 2014 12:10 PM EDT2014-07-29 16:10:35 GMT
    A raging fire happens in Roseville and of all places to be struck by lightning - the steeple of the New Life Church of God in Christ.Pastor Darrell Moore and his family are devastated."I got here and I found out I really didn't have a church anymore, " he said. Moore was attending a Sunday evening service at another church, when a member of new life called him repeatedly. When he finally answered, it was bad news."The fire department was here, there was water everywhere," said Mary Moore, mot...
    A raging fire happens in Roseville and of all places to be struck by lightning - the steeple of the New Life Church of God in Christ.Pastor Darrell Moore and his family are devastated."I got here and I found out I really didn't have a church anymore, " he said. Moore was attending a Sunday evening service at another church, when a member of new life called him repeatedly. When he finally answered, it was bad news."The fire department was here, there was water everywhere," said Mary Moore, mot...
  • Grosse Pointe Park's new farmer's market seen by some as a barrier to Detroit

    Grosse Pointe Park's new farmer's market seen by some as a barrier to Detroit

    Tuesday, July 29 2014 11:58 AM EDT2014-07-29 15:58:07 GMT
    Some Detroiters are calling for a boycott of Grosse Pointe Park after the city built a farmer's market that they believe cuts off access to and from Detroit.
    Some Detroiters are calling for a boycott of Grosse Pointe Park after the city built a farmer's market that they believe cuts off access to and from Detroit.
  • Neighbors tie pink ribbons to remember murdered Armada teen

    Neighbors tie pink ribbons to remember murdered Armada teen

    Tuesday, July 29 2014 10:40 AM EDT2014-07-29 14:40:12 GMT
    The community in Armada Township is pulling together to support the family of murdered 14-year-old April Millsap.
    The community in Armada Township is pulling together to support the family of murdered 14-year-old April Millsap.
  • Download the FOX 2 Apps


  • FOX 2 News Five-Day Forecast
Powered by WorldNow

WJBK-TV | Fox 2
16550 West Nine Mile Rd.
Southfield, MI 48075

Main Station: (248) 557-2000
Newsroom: (248) 552-5103

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices