ACA International clarifies that it does not target stimulus payment checks to settle outstanding debts after U.S. Senate vote July 23. Editor’s note: This article is available to members only.
7/24/2020 12:30
Legislation (S. 3841) passed by unanimous consent July 23 in the U.S. Senate places parameters around a creditor’s ability to garnish a consumer’s bank account. Contrary to the narrative that the debt collection industry is eager to garnish stimulus funds, the reality is professional debt collectors would not know the character of funds contained in a consumer’s bank account or the source of these funds. ACA International members are not seeking to garnish stimulus checks.
ACA International CEO Mark Neeb released the following statement in reference to the legislation:
“The Senate’s attempt to help Americans by protecting stimulus funds is noble, however, debt collectors are not seizing these funds. If the banks feel they need legislation to work this out with their customers, we support those efforts and appreciate the Senate’s clarification that this is specific to the bank levy process.
Since the COVID-19 outbreak, ACA members have continued efforts to contact consumers to set up flexible payment plans, provide access to emergency hardship programs and offer qualified discounts. These efforts are critical to help consumers and creditors bridge the gap and accelerate our nation’s economic recovery. To stop the functioning of the credit and collection system for the part of the economy that is still functioning normally only makes it worse for hospitals, utilities and governments trying to survive and to serve the whole community.
Everyone is struggling, including small medical practices, regional hospitals and contractors who are having difficulty making payroll and providing for their families. We have made it our mission to find solutions that do not put more stress on consumers but also help keep small businesses afloat, none of which include targeting stimulus checks.”
The bill, S. 3841, aims to protect 2020 recovery rebates. Related legislation in the U.S. House of Representatives, the Protect our Checks Act of 2020 (H.R. 6850), sponsored by U.S. Rep. Gregory Meeks, D-N.Y., was introduced in May. The legislation seeks to protect stimulus checks from garnishment and fees and from being used as an offset by a credit union or depository institution, and for other purposes.
S. 3841 is sponsored by U.S. Sens. Chuck Grassley, R-Iowa, chair of the Senate Finance Committee, Sherrod Brown, D-Ohio, ranking member of the Senate Committee on Banking, Housing, and Urban Affairs, Ron Wyden, D-Ore., ranking member of the finance committee, John Reed, D-R.I., Chris Van Hollen, D-Md., Charles Schumer, D-N.Y., and Tim Scott, R-S.C.
S. 3841 will next be sent to the House for consideration.
Congress continues to debate the next coronavirus relief bill. A GOP proposal announced this week includes another round of stimulus payments and extra unemployment benefits, according to The Hill.