attorney

Protecting your stimulus check from creditors

Protecting your stimulus check from creditors
Friends,
Last week, I notified creditors, debt collectors, and financial institutions that stimulus payments resulting from the federal government’s Coronavirus Aid, Relief, and Economic Security (CARES) Act are exempt from seizure or garnishment by debt collectors.
I took this step to place creditors on notice that if they attempt to garnish a Rhode Islander’s CARES Act payment, the Attorney General’s Office is prepared to take legal action to enforce the law and protect Rhode Islanders from unlawful collection practices.
Last month, Congress passed the CARES Act, which provides emergency assistance for individuals, families, and businesses affected by the 2020 coronavirus pandemic. Under the Act, eligible individuals and families can receive a one-time cash payment of up to $1,200 for each individual or $2,400 for eligible individuals filing a joint tax return, plus an additional $500 for each dependent child.
Because the CARES Act does not explicitly designate these emergency stimulus payments as exempt from garnishment, as similar government payments (such as social security, disability and veterans’ benefits) generally are, the Office developed the guidance to advise Rhode Island banking institutions and lenders.
I also joined 24 Attorneys General on a letter to the U.S. Department of the Treasury asking the agency to protect CARES Act payments to the same extent as other government relief programs and ensure the payments go to individuals, families, and businesses affected by the 2020 coronavirus pandemic.
If you have concerns about seizure or debt collection of CARES Act payments, reach out to the RIAG Consumer Protection team at 401-274-4400 or consumers@riag.ri.gov.
Visit the RIAG COVID-19 Resource Page for more information about how the Office is protecting consumers.
Stay safe,
Peter