As Mnuchin tells CBS that $1200 should last people 10 wks, we also find out the Stimulus funds aren’t explicitly off-limits to debt collectors or creditors, unlike other gov't $ like SS & SSDI, debt collectors CAN seize people's Stim $. #ThursdayThoughts caller.com/story/money/pe…
2-'[This is] a devastating development for many consumers. And that makes the issue doubly problematic at the moment, given that millions of Americans are struggling with lost jobs and income. Not only could they lose all or part of their stimulus checks,
3-"but they could also get locked out of their bank accounts. "We are hearing a lot of stories for people whose bank accounts are frozen” because of garnishment, Saunders says.
4-"The loophole has prompted 25 state attorneys general and Hawaii’s Office of Consumer Protection to ask Treasury Secretary Steven Mnuchin to ensure that debt collectors and creditors can’t take Americans’ stimulus checks.
5-"“During this public health and economic crisis, the States do not believe that the billions of dollars appropriated by Congress to help keep hard-working Americans afloat should be subject to garnishment,” they said in a letter sent to Mnuchin on Monday.
6-"A Treasury official reportedly told banking officials last week that the law doesn’t prohibit banks from taking the stimulus payments for delinquent loans or past-due fees, according to The American Prospect.A Treasury spokeswoman said the department is looking into the issue.
7-"Treasury has said that about 80 million Americans will receive their checks by the end of the week via direct deposit. The amount depends on your marital status, income and number of children under 17.
8-"Blocking debt collectors from grabbing that $ has a simple fix, according to the attorneys general. Treasury could designate the stimulus checks as exempt from garnishments, incl redefining the stimulus checks as “benefit payments” that would be off-limits to debt collectors.
9-"Not everyone is waiting for Treasury to act. Already, Massachusetts and Ohio have declared that their residents’ stimulus checks can’t be touched by debt collectors.
10-"Consumers who are concerned their accounts might get garnished could request a paper check through the IRS.gov’s “Get My Payment” service, Saunders noted. They can then cash their check rather than depositing it.
11-"Saunders noted that others who have already received a direct deposit and are concerned about garnishment could withdraw the money from their accounts"
