Daily Tax Report ®

Bipartisan Bill Would Block Banks Garnishing Stimulus Payments

May 22, 2020, 3:04 PM

Banks would be blocked from garnishing stimulus payments deposited into consumer accounts if they have past debts under a bipartisan Senate bill introduced Friday.

  • “We established these recovery rebates to help individuals and families through the tough times of this pandemic,” Senate Finance Chairman Chuck Grassley says in statement
    • “ We did not establish them just so debt collectors could swoop in and undermine that purpose”
  • NOTE: The CARES Act, which included $1,200 payments for low-and middle-income adults, didn’t prevent banks from garnishing overdraft fees or other debts when the payments were deposited into accounts
  • Democrats Sherrod Brown and Ron...

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