Debt collectors can seize the new stimulus checks-Lawmakers are trying to fix that

CNN ^ | March 16, 2021 | Katie Lobosco

[SJackson]

The latest round of stimulus payments that started going out over the weekend are open to being seized by private debt collectors -- a problem lawmakers are rushing to fix.

Recipients with unpaid credit card or medical bills for which a company has obtained a judgment against the debtor could see the fresh infusion taken from their bank accounts, potentially preventing those in need from getting the emergency cash.

Sen. Ron Wyden, a Democrat from Oregon, plans to introduce a fix that would shield the payments from garnishment as early this week, according to a spokeswoman.

But for now, it's possible collectors could seize the money, worth up to $1,400 per person, that the federal government is directly depositing into people's bank accounts.

[SJackson]

The headline is misleading as these aren't merely debts in the hand of collectors, rather court judgements. The legal process has spoken. Hard to imagine Congress or the administrations would do something unlawful? US courts have issued $53 billion in judgements to victims of terrorism, families of military members killed or wounded in Iraq by Iranian proxies, victims of the Marine Barracks bombing and the Tehran Embassy capture. Yet the Obama administration and not the Biden administration have managed to transfer billions to Iran outside the reach of court judgements. Can't imagine it's legal, if I attempted to transfer funds to Iran or a terror group I'd be posting from jail.

[bk1000]

I guess expecting people to pay their debts is white supremacy or something.

[rktman]

Apparently those that hold the debts and court judgements AREN’T in need then. Sort of like landlords that haven’t been paid rent for months. They don’t need it either right?

P.S. Illegal actions by the govt no longer surprise us. SOP!

[butlerweave]

Can they also take Reparations , LOL

[NEMDF]

Well, probably racist, if nothing else.

[SJackson]

Unless Congress somehow tries to prevent it. Court judgements should be honored. Impacted individuals could have filed bankruptcy before receiving their funds.

[Eddie01]

Yet another source of laugh out loud entertainment this morning.

Ha Ha!

[LibWhacker]

Proves that dough never was intended to stimulate the economy or they wouldn’t object to it ultimately ending up in the hands of legitimate businesses.

[Sirius Lee]

Rightly so. Landlords who’ve been ripped off for the past year should be first in line to intercept those checks.

[17th Miss Regt]

potentially preventing those in need from getting the emergency cash.

This does not prevent those in need from getting the emergency cash. They get it in their accounts, have it, and then it is taken by debt collectors in accordance with a judgement of the court.

[AppyPappy]

A family member has refused to file taxes for the last decade or so. The government takes anything that shows up in his bank account

[AndyJackson]

Hard to imagine Congress or the administrations would do something unlawful?

While I don't agree with the wisdom of this, if Congress passes a law and it is constitutional it is "lawful" by definition.

[ScottfromNJ]

“But for now, it’s possible collectors could seize the money, worth up to $1,400 per person, that the federal government is directly depositing into people’s bank accounts.”

In many states the first thousand or so in a bank account is protected from debt collectors so I doubt collectors would even bother to apply for new writs on judgements over what would amount to only a few hundred dollars collectable. If the debtor has a large bank account then that’s a different story, but the funds in those accounts would likely have been seized and depleted by now anyway by creditors.

[Scrambler Bob]

How about those gambling debts and vigorish?

Those debt collectors seem pretty efficient.

[Wuli]

“The latest round of stimulus payments that started going out over the weekend.....”

Anyone seen one yet???

[atomic_dog]

Biden has always been a loyal toady for all the big banks that are all incorporated in?

Anyone, anyone?

[Starcitizen]

The headline is misleading as these aren’t merely debts in the hand of collectors, rather court judgements. The legal process has spoken.

——————-

What do consumer debts have anything to do with what you wrote?

Most debt collectors know exactly what judges and venues are most friendly to debt collectors.

So yeah, expecting my stimulus to be taken, unless the lawyer I have can stop it.

I’m guessing tens of millions will have their checks given directly to landlords and property management companies.

Evictions were banned, not judgement and debt collection.

[Harpotoo]

So you won’t get something that you never had:-)

[I want the USA back]

Right. These are COURT JUDGEMENTS. If wyden’s law is passed, it will be fascistic - the federal government has no right to invalidate a legal court decision except through appeal through the courts.

The next logical step for widen is to let renters keep the money and not pay their rent money that is legally due.

[Twotone]

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