Press Releases
Kuster Urges Treasury Secretary to Protect Stimulus Checks from Private Debt Collectors
Concord, N.H.,
April 20, 2020
Concord, NH - Congresswoman Annie Kuster (NH-02) is calling on Treasury Secretary Steve Mnuchin to protect stimulus payments for individuals from private debt collectors. Kuster is urging regulations designating Economic Impact Payments (stimulus payments) authorized by the CARES Act as federal benefits exempt from garnishment. While the CARES Act explicitly prohibits the federal government from taking stimulus payments for student loans, the law does not extend this prohibition to private lenders and banks. As a result, some people with overdraft fees or garnishments due to other debts are having their stimulus checks taken. In her letter, Kuster called on Secretary Mnuchin to move forward with the regulations Congress has enabled the Treasury Department to set up to exempt stimulus payments from garnishment. “While Congress specifically exempted stimulus payments from some debts owed to states or the federal government, like student loans, due to a legislative oversight, nothing in the CARES Act explicitly protects these payments from private garnishments,” wrote Kuster. “Furthermore, while some financial institutions have agreed to pause overdraft fees, others are seizing these payments to cover punitive fees. The only way to guarantee Americans do not have these benefits taken is for you to use the authority provided by the CARES Act to designate these payments as exempted from garnishment.” Kuster continued, “These funds are intended to help families buy groceries, prescription medication, and other essential items during this public health crisis. Allowing debt collectors to stick their hands into the pockets of working people while we battle a historic illness is counter to the intent of these resources. Congress has empowered you to help families – I urge you to consider this common sense measure and prevent more Americans from unnecessarily suffering.” The CARES Act, which Congresswoman Kuster voted in favor of, was signed into law last month. It is the largest economic relief package in history, with $2.2 trillion for hospitals and health care providers, not-for-profit organizations, and large businesses. The full letter is available HERE and below: Dear Secretary Mnuchin: I write to urge you to designate Economic Impact Payments (stimulus payments) authorized by Section 2201 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act as federal benefits exempted from garnishment. The CARES Act is intended to provide immediate relief to Americans who are struggling because of the COVID-19 crisis. One of the centerpieces of this legislation are stimulus payments to individuals with income below $75,000 or dual filers with income below $150,000 of $1,200 or $2,400 respectively. The legislation also provides an additional $500 to parents for each of their dependent children under the age of 17. These stimulus payments are supposed to help Americans meet unexpected expenses associated with COVID-19. Given that nearly 40% of Americans cannot cover an unexpected $400 expense with savings, these payments are critically important to help Americans get through this crisis.[1] While Congress specifically exempted stimulus payments from some debts owed to states or the federal government, like student loans, due to a legislative oversight, nothing in the CARES Act explicitly protects these payments from private garnishments. Furthermore, while some financial institutions have agreed to pause overdraft fees, others are seizing these payments to cover punitive fees.[2] The only way to guarantee Americans do not have these benefits taken is for you to use the authority provided by the CARES Act to designate these payments as exempted from garnishment. These funds are intended to help families buy groceries, prescription medication, and other essential items during this public health crisis. Allowing debt collectors to stick their hands into the pockets of working people while we battle a historic illness is counter to the intent of these resources. Congress has empowered you to help families – I urge you to consider this common sense measure and prevent more Americans from unnecessarily suffering. Sincerely, Ann McLane Kuster Member of Congress ### |