Many Americans received their stimulus payment this week, although those who owe on credit cards, medical bills, or private student loan debt could be at risk of losing the money.
What You Need To Know
The $2.2 trillion congressional coronavirus relief plan shields the payments from being taken for federal student loan payment and unpaid taxes. However, the plan does not protect from some private debt collectors. This loophole in the law could potentially leave about one third of Americans at risk of losing the stimulus money.
Twenty- five state attorneys generals are asking to issue protection of the stimulus payment from private debt collectors. While states such as, Ohio, Illinois, Massachusetts, and Washington have issued an order to prevent payments from being taken by private debt collectors. Since the Treasury has not issued any guidance, professionals are suggesting that Americans monitor their bank account closely, and remove the money as quickly as possible to avoid having the stimulus payment garnished.