Mange amerikanere blir nok skuffet nå
Banks can take your coronavirus check to pay off debts, Treasury says
Lauren Theisen
By LAUREN THEISEN
The coronavirus relief checks from the government’s stimulus package are starting to come through. But Americans who owe money to their bank might see only part or even none of what’s 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 recipient’s 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 Treasury’s 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.
“There’s 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 there’s 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.
Of the five large banks contacted by the Prospect about this situation, only JPMorgan responded, vowing not to follow their normal practice of offsetting negative balances with this incoming money. For many vulnerable Americans living paycheck-to-paycheck or worse during this pandemic, there’s a very real possibility that this much-needed sliver of relief could get snatched up by banks, payday lenders, or other predators looking to take advantage of the system.
Opponents of the practice, like Lauren Saunders, associate director with the National Consumer Law Center, told the Prospect that if debt collectors do grab this money, they’re choosing a despicable moment to do so.
“At a time when people are desperate to buy food, the idea that anybody would grab [the $1,200 payments], let alone the banks they trust with their money, is appalling.”