Crystal Clear
2020-04-15 12:47:53 UTC
The coronavirus relief checks from the governments stimulus
package are starting to come through. But Americans who owe
money to their bank might see only part or even none of whats
due to them.
According to a report from The American Prospect, the relief
checks which could be up to $1,200 for qualifying Americans
are not exempt from private debt collection. And because, if the
IRS has their bank account on file, the money goes directly into
the recipients account, it could easily be taken by banks to
offset fees or unpaid loans.
The Prospect further reported that, in a meeting last week
between Ronda Kent, chief disbursing officer with Treasurys
Bureau of the Fiscal Service, and banking officials, Kent noted
that she had heard questions from banks over whether or not they
could collect the directly deposited money.
Theres nothing in the law that precludes that action, she
said.
Under the terms of the law, however, the Treasury does have the
power to declare those payments exempt from bank collection. On
Monday, a letter from 25 state attorneys general urged them to
do just that. But theres no indication that the federal
government will act on that request, and unlike other government
payments like social security or veterans benefits, this check
is technically a tax credit and therefore can be seized by
collectors.
https://www.nydailynews.com/coronavirus/ny-banks-can-take-your-
coronavirus-check-to-pay-off-debts-treasury-20200415-
3v2tu6hodzbcpg2lmhks5u7ksu-story.html
package are starting to come through. But Americans who owe
money to their bank might see only part or even none of whats
due to them.
According to a report from The American Prospect, the relief
checks which could be up to $1,200 for qualifying Americans
are not exempt from private debt collection. And because, if the
IRS has their bank account on file, the money goes directly into
the recipients account, it could easily be taken by banks to
offset fees or unpaid loans.
The Prospect further reported that, in a meeting last week
between Ronda Kent, chief disbursing officer with Treasurys
Bureau of the Fiscal Service, and banking officials, Kent noted
that she had heard questions from banks over whether or not they
could collect the directly deposited money.
Theres nothing in the law that precludes that action, she
said.
Under the terms of the law, however, the Treasury does have the
power to declare those payments exempt from bank collection. On
Monday, a letter from 25 state attorneys general urged them to
do just that. But theres no indication that the federal
government will act on that request, and unlike other government
payments like social security or veterans benefits, this check
is technically a tax credit and therefore can be seized by
collectors.
https://www.nydailynews.com/coronavirus/ny-banks-can-take-your-
coronavirus-check-to-pay-off-debts-treasury-20200415-
3v2tu6hodzbcpg2lmhks5u7ksu-story.html