The Senate, on Wednesday, passed legislation to protect coronavirus stimulus checks from being garnished by the bank or debt collectors.
Stimulus checks are coming, but when and how much is uncertain for now. Before the next stimulus checks are passed, the Senate, however, wants to make sure that you are able to use the full amount that you get. For this, the Senate, on Wednesday, passed legislation to protect coronavirus stimulus checks from being garnished by banks or debt collectors.
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The CARES Act carried a provision to protect the stimulus checks from being used to pay for unpaid taxes or other debts owed to state and local governments. It did not, however, prevent private debt collectors from chipping away at the direct payment.
On Thursday, the Senate passed bill S. 3841 by unanimous consent to plug this loophole. The bill titled “A bill to protect 2020 recovery rebates for individuals from assignment or garnishment, and for other purposes” was first introduced in May by Senators Chuck Grassley (R-IA), Sherrod Brown (D-OH), Ron Wyden (D-OR) and Tim Scott (R-SC).
