Senate Passes Bill Shielding Stimulus Checks from Debt Collectors – By Brendan Cole (Newsweek) / July 24 2020
Legislation passed unanimously by the Senate aims to protect coronavirus relief payments from the hands of banks and debt collectors.
The CARES Act authorizing payments of up to $1,200 per adult and an additional $500 per qualifying dependent child passed in March, ensured the payments could not be used for unpaid taxes, or other debts owed to state and local governments, The Hill reported. However it did not stop private debt collectors from garnishing the payments.
But bipartisan legislation co-sponsored by senate finance committee chairman Sen. Chuck Grassley (R-Iowa) passed unanimously on Thursday, would ensure payments went straight into the pockets of Americans and could not be pursued by creditors.
“This is a common sense measure that will ensure the $1,200 Economic Impact Payments Congress provided to help individuals meet essential needs during these trying times don’t instead end up in the pockets of creditors and debt collectors,” Grassley said in a statement.
Continue to article: https://www.newsweek.com/stimulus-check-garnishment-cares-act-1520170
