Second Stimulus Check Cannot Be Seized by Banks, Debt Collectors Thanks to New Bill

The Senate has unanimously passed a new bill prohibiting banks and debt collectors from being able [...]

By Stephen Andrew

The Senate has unanimously passed a new bill prohibiting banks and debt collectors from being able to seize the second stimulus checks. According to The Hill, the bill had overwhelming bipartisan support, and will protect citizens from having their next coronavirus relief payments garnished. Unfortunately, it was with the previous stimulus bill, the CARES Act, that taxpayers and politicians became aware that this was a possibility, as many reported having their money seized by bill-collectors.

Senate Finance Committee Chairman Chuck Grassley was one of the main supporters of the new legislation, and he has since issued a statement. "This is a common sense measure that will ensure the $1,200 Economic Impact Payments Congress provided to help individuals meet essential needs during these trying times don't instead end up in the pockets of creditors and debt collectors." The Senate is now urging the House to pass its own identical version of the bill. This is due to the fact that the Senate bill is tax-related, and therefore cannot be sent to the House. However, if the House passes its own bill then that can be sent to the Senate, who can pass it and then send it to President Trump.

Sen. Sherrod Brown, the top Democrat on the Senate Banking Committee, and a sponsor of the Senate bill, has voiced strong support for this plan. "The House must immediately take up this bill and ensure that the money allocated to working families by Congress goes to pay for food, medicine, and other necessities, not to debt collectors," he said. The Hill did not report if any representatives from the House have commented on plans to pass their own bill.

Regarding the next stimulus bill, Treasury Secretary Steven Mnuchin recently appeared on CNBC to discuss the progress of the new package. "Let me just be clear on the President's priority in the bill and as you know this is a negotiation so we need both Republicans and Democrats support, but we are on the same page with the Republicans," he said. "We've had very good meetings over the last few days, the President's priority is about kids and jobs. We need to be able to get kids back to school safely." At this time, there is no word on when the official details of the new bill might be rolled out.

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