A group of 12 organizations, including those representing financial institutions and consumer advocacy groups, yesterday issued a joint statement supporting legislation that has been introduced in the Senate to protect stimulus funds received under the CARES Act from garnishments.
The groups participating in the joint statement were:
- American Bankers Association
- Bank Policy Institute
- Consumer Bankers Association
- The Clearing House
- National Consumer Law Center (on behalf of its low income clients)
- Americans for Financial Reform
- Center for Responsible Lending
- Consumer Action
- Consumer Federation of America
- Consumer Reports
- National Association of Consumer Advocates
- Public Citizen and U.S. PIRG
The proposed legislation was introduced last Friday by Sen. Chuck Grassley [R-Iowa] and Sen. Ron Wyden [D-Ore.], the chair and ranking member of the Senate Finance Committee, Sen. Sherrod Brown [D-Ohio], the ranking member of the Senate Banking Committee, and Sen. Tim Scott [R-S.C.]. It would instruct the Treasury Department to encode the stimulus payments so they could be identified as coming from the federal government and allow banks to protect the funds, much as they do with other forms of aid, such as Social Security benefits.
The bill has been referred to the Senate Finance Committee for its consideration.
“America’s banks stand ready to provide full access to funds appropriated for the explicit purpose of helping families make ends meet during these difficult times, but need Congress to move forward with this legislation to enable them to do so,” the groups said in their joint statement, “commending” the Senators for “introducing bipartisan legislation to prevent Economic Impact Payments from being garnished by debt collectors.
“Providing this certainty would ensure that American families receive these benefits as intended. We urge the Senate to move quickly to pass this legislation.”
