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Senate Passes Bill to Prevent Debt Collectors from Garnishing Stimulus Checks

Submitted by ckanon@abi.org on
The Senate passed bipartisan legislation that would protect coronavirus relief payments from being garnished by banks and debt collectors, The Hill reported. The Senate passed the bill by unanimous consent. Legislation that Congress passed in March, known as the CARES Act, authorized payments for most Americans of up to $1,200 per adult and $500 per child. The CARES Act prevented the payments from being reduced because of unpaid taxes or other debts owed to state and local governments. However, it did not prevent private debt collectors from garnishing the payments. The bill the Senate passed would protect the stimulus payments from being garnished by banks, similar to how Social Security payments are protected from garnishment. Senators urged the House to pass an identical version of the bill. The Senate bill cannot be sent directly to the House because it is a tax bill, but if the House passes an identical bill and sends it to the Senate, the measure could be passed in the Senate and sent to President Donald Trump. The Senate's passage of the bill comes as lawmakers and the White House are working on another coronavirus relief package. Both Republicans and Democrats are interested in including a second round of direct payments in that package.
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