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Creditors can snatch your stimulus check if you have outstanding debts

Trade News by Trade News
April 14, 2020
in Personal Finance
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Creditors can snatch your stimulus check if you have outstanding debts
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A fight could be brewing over your coronavirus stimulus check. Your opponent could be your very own bank.

If you have outstanding debts, your stimulus payments could be reduced or taken by creditors or debt collectors, in what 25 state attorneys general called a “legislative oversight” in a letter sent to Treasury Secretary Steve Mnuchin on Monday.

“The CARES Act does not explicitly designate these emergency stimulus payments as exempt from garnishment, as similar government payments (such as Social Security, disability and veterans’ benefits) are,” the state officials wrote.

Millions of Americans are expecting payments from $1,200 to $2,400, depending on whether they are single or married, plus $500 per child under 17. The Treasury Department has said it expects more than 80 million individuals to receive payments in their bank accounts this week. Paper mail checks will be sent out to individuals and families who do not have their bank account information on record with the…



Source Google News

Tags: checkcreditorsdebtsoutstandingsnatchstimulus
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