Bitch Banks Authorized to grab stimulus checks off their customers
Banks can use emergency paychecks, given to US citizens to help them stay afloat amid the coronavirus pandemic, to repay outstanding debts.
Because Regulators have given banks the green light to use stimulus funds to pay off debts that individuals owe them.
Congress did not exempt CARES Act payments from private debt collection, and the Treasury Department has been reluctant to exempt them through its rulemaking authority. This means that individuals could see their payments transferred from their hands into the hands of their creditors, potentially leaving them with nothing.
The Treasury Department effectively blessed this activity on a webinar with banking officials last week.
In audio obtained by the Prospect, Ronda Kent, chief disbursing officer with Treasury’s Bureau of the Fiscal Service, can be heard explaining that banks had posed questions to her about “whether these payments could be subject to collection from the bank to which the money is deposited, if the payee owes an outstanding loan or other payments to the bank.”
https://prospect.org/coronavirus/banks-can-grab-stimulus-check-pay-debts/