Amid bipartisan criticism, Treasury Department attorneys review bank seizures of $1,200 stimulus
Source: Washington Post
The Treasury Department is reviewing whether it has the legal authority to prevent banks and private debt collectors from seizing $1,200 government stimulus payments, according to a person familiar with the internal deliberations, as blowback builds over private lenders clawing back parts of the emergency financial relief package.
The review is being conducted by legal counsel at the Treasury Department, said the person, who spoke on the condition of anonymity to discuss agency process. It was unclear when a determination about the payments would be made.
Earlier this month, the Trump administration began directly depositing stimulus checks in the bank accounts of 80 million Americans to help them survive the economic downturn caused by the coronavirus. But reports quickly surfaced that some of these payments were being redirected to banks and private debt collectors from people who have overdraft fees, delinquent loans, or other debt obligations.
These garnishments have sparked a bipartisan backlash in Congress, with lawmakers arguing the money should be walled off from collection by banks and private debt collectors. Several large banks have also announced they would stop taking the money amid public criticism. USAA, which services veterans and military families, announced last week it would return the stimulus funds and change its policy after The American Prospect reported the bank took $3,400 in payments from the family of a disabled veteran to offset an existing debt.
Read more: https://www.msn.com/en-us/money/markets/amid-bipartisan-criticism-treasury-department-attorneys-review-bank-seizures-of-dollar1200-stimulus-checks/ar-BB12VQM2
dont let them poor folk have no $$$
= new reply since forum marked as read
And when I read where some of the PPP money went I'm just as apocalyptic.
