Apr 17, 2020
Sen. Kamala Harris and 13 other senators on Friday sent a letter to Treasury Secretary Steve Mnuchin demanding that coronavirus stimulus checks not be subject to debt collections as reports continue to increase of the one-time $1,200 payments being seized by creditors.
"Americans are in dire need of money to pay their rent and put food on the table--this is absurd," Harris tweeted Friday.
\u201cUnacceptable that debt collectors are cashing in on people's $1,200 direct payments. Americans are in dire need of money to pay their rent and put food on the table\u2014this is absurd.\n \nI'm leading my colleagues today in a push to end this.\u201d— Vice President Kamala Harris (@Vice President Kamala Harris) 1587142276
The letter, which was also signed by Sens. Dick Durbin (D-Ill.), Bernie Sanders (I-Vt.), Chris Murphy (D-Conn.), Richard Blumenthal (D-Conn.), Chris Van Hollen (D-Md.), Jeff Merkley (D-Ore.), Patty Murray (D-Wash.), Doug Jones (D-Ala.), Sheldon Whitehouse (D-R.I.), Tammy Baldwin (D-Wis.), Amy Klobuchar (D-Minn.) and Tina Smith (D-Minn.), demands Mnuchin "exempt Americans' direct assistance payments from private debt collection so that American families can receive critical assistance to help them get through this unprecedented crisis."
"The American people are struggling right now to find ways to navigate the current crisis and keep themselves and their families healthy," the letter continues. "They need this assistance more than ever and it is Treasury's responsibility to act and ensure that every American family who is eligible for the assistance can receive its full benefit."
The senators add that Mnuchin must act quickly, "given the fact that direct assistance payments will be mailed or deposited directly into banking accounts very soon."
According to The Hill, private financial institutions which are seizing the money are issuing their own letter to lawmakers claiming the Treasury Department and Congress have made it impossible to know what is and is not permitted:
Top banking associations also sent a letter to Sens. Sherrod Brown (D-Ohio) and Elizabeth Warren (D-Mass.) noting that under the coronavirus bill, "Congress failed to define these payments as benefits subject to preemption from garnishment."
"As a result, with regard to any legal garnishment, depository institutions have no discretion and are obligated to comply with applicable state laws and court-ordered garnishments," the groups said, adding that Congress should pass language clarifying future COVID-19 payments.
Despite the claims that banks have their hands tied by the law, USAA was able to cease seizure and refund money taken from checks for veterans and their families on Thursday. As Common Dreams reported, the decision came after outrage in the wake of an exclusive from David Dayen of the American Prospect on the seizures. Dayen made the case for federal guidance on the payments after the reversal by USAA.
"Only a global solution by Treasury can ensure that the payments get into the hands of individuals struggling to make ends meet and afford basic necessities," wrote Dayen. "A bank-by-bank or state-by-state solution will ultimately not protect everyone in time."
An Urgent Message From Our Co-Founder
Dear Common Dreams reader, The U.S. is on a fast track to authoritarianism like nothing I've ever seen. Meanwhile, corporate news outlets are utterly capitulating to Trump, twisting their coverage to avoid drawing his ire while lining up to stuff cash in his pockets. That's why I believe that Common Dreams is doing the best and most consequential reporting that we've ever done. Our small but mighty team is a progressive reporting powerhouse, covering the news every day that the corporate media never will. Our mission has always been simple: To inform. To inspire. And to ignite change for the common good. Now here's the key piece that I want all our readers to understand: None of this would be possible without your financial support. That's not just some fundraising cliche. It's the absolute and literal truth. We don't accept corporate advertising and never will. We don't have a paywall because we don't think people should be blocked from critical news based on their ability to pay. Everything we do is funded by the donations of readers like you. Our Summer Campaign is now underway, and there’s never been a more urgent time for Common Dreams to be as vigilant as possible. Will you donate now to help power the nonprofit, independent reporting of Common Dreams? Thank you for being a vital member of our community. Together, we can keep independent journalism alive when it’s needed most. - Craig Brown, Co-founder |
Our work is licensed under Creative Commons (CC BY-NC-ND 3.0). Feel free to republish and share widely.
amy klobucharbernie sanderscoronavirusdick durbindoug joneskamala harrisrichard blumenthalsteven mnuchin
Sen. Kamala Harris and 13 other senators on Friday sent a letter to Treasury Secretary Steve Mnuchin demanding that coronavirus stimulus checks not be subject to debt collections as reports continue to increase of the one-time $1,200 payments being seized by creditors.
"Americans are in dire need of money to pay their rent and put food on the table--this is absurd," Harris tweeted Friday.
\u201cUnacceptable that debt collectors are cashing in on people's $1,200 direct payments. Americans are in dire need of money to pay their rent and put food on the table\u2014this is absurd.\n \nI'm leading my colleagues today in a push to end this.\u201d— Vice President Kamala Harris (@Vice President Kamala Harris) 1587142276
The letter, which was also signed by Sens. Dick Durbin (D-Ill.), Bernie Sanders (I-Vt.), Chris Murphy (D-Conn.), Richard Blumenthal (D-Conn.), Chris Van Hollen (D-Md.), Jeff Merkley (D-Ore.), Patty Murray (D-Wash.), Doug Jones (D-Ala.), Sheldon Whitehouse (D-R.I.), Tammy Baldwin (D-Wis.), Amy Klobuchar (D-Minn.) and Tina Smith (D-Minn.), demands Mnuchin "exempt Americans' direct assistance payments from private debt collection so that American families can receive critical assistance to help them get through this unprecedented crisis."
"The American people are struggling right now to find ways to navigate the current crisis and keep themselves and their families healthy," the letter continues. "They need this assistance more than ever and it is Treasury's responsibility to act and ensure that every American family who is eligible for the assistance can receive its full benefit."
The senators add that Mnuchin must act quickly, "given the fact that direct assistance payments will be mailed or deposited directly into banking accounts very soon."
According to The Hill, private financial institutions which are seizing the money are issuing their own letter to lawmakers claiming the Treasury Department and Congress have made it impossible to know what is and is not permitted:
Top banking associations also sent a letter to Sens. Sherrod Brown (D-Ohio) and Elizabeth Warren (D-Mass.) noting that under the coronavirus bill, "Congress failed to define these payments as benefits subject to preemption from garnishment."
"As a result, with regard to any legal garnishment, depository institutions have no discretion and are obligated to comply with applicable state laws and court-ordered garnishments," the groups said, adding that Congress should pass language clarifying future COVID-19 payments.
Despite the claims that banks have their hands tied by the law, USAA was able to cease seizure and refund money taken from checks for veterans and their families on Thursday. As Common Dreams reported, the decision came after outrage in the wake of an exclusive from David Dayen of the American Prospect on the seizures. Dayen made the case for federal guidance on the payments after the reversal by USAA.
"Only a global solution by Treasury can ensure that the payments get into the hands of individuals struggling to make ends meet and afford basic necessities," wrote Dayen. "A bank-by-bank or state-by-state solution will ultimately not protect everyone in time."
Sen. Kamala Harris and 13 other senators on Friday sent a letter to Treasury Secretary Steve Mnuchin demanding that coronavirus stimulus checks not be subject to debt collections as reports continue to increase of the one-time $1,200 payments being seized by creditors.
"Americans are in dire need of money to pay their rent and put food on the table--this is absurd," Harris tweeted Friday.
\u201cUnacceptable that debt collectors are cashing in on people's $1,200 direct payments. Americans are in dire need of money to pay their rent and put food on the table\u2014this is absurd.\n \nI'm leading my colleagues today in a push to end this.\u201d— Vice President Kamala Harris (@Vice President Kamala Harris) 1587142276
The letter, which was also signed by Sens. Dick Durbin (D-Ill.), Bernie Sanders (I-Vt.), Chris Murphy (D-Conn.), Richard Blumenthal (D-Conn.), Chris Van Hollen (D-Md.), Jeff Merkley (D-Ore.), Patty Murray (D-Wash.), Doug Jones (D-Ala.), Sheldon Whitehouse (D-R.I.), Tammy Baldwin (D-Wis.), Amy Klobuchar (D-Minn.) and Tina Smith (D-Minn.), demands Mnuchin "exempt Americans' direct assistance payments from private debt collection so that American families can receive critical assistance to help them get through this unprecedented crisis."
"The American people are struggling right now to find ways to navigate the current crisis and keep themselves and their families healthy," the letter continues. "They need this assistance more than ever and it is Treasury's responsibility to act and ensure that every American family who is eligible for the assistance can receive its full benefit."
The senators add that Mnuchin must act quickly, "given the fact that direct assistance payments will be mailed or deposited directly into banking accounts very soon."
According to The Hill, private financial institutions which are seizing the money are issuing their own letter to lawmakers claiming the Treasury Department and Congress have made it impossible to know what is and is not permitted:
Top banking associations also sent a letter to Sens. Sherrod Brown (D-Ohio) and Elizabeth Warren (D-Mass.) noting that under the coronavirus bill, "Congress failed to define these payments as benefits subject to preemption from garnishment."
"As a result, with regard to any legal garnishment, depository institutions have no discretion and are obligated to comply with applicable state laws and court-ordered garnishments," the groups said, adding that Congress should pass language clarifying future COVID-19 payments.
Despite the claims that banks have their hands tied by the law, USAA was able to cease seizure and refund money taken from checks for veterans and their families on Thursday. As Common Dreams reported, the decision came after outrage in the wake of an exclusive from David Dayen of the American Prospect on the seizures. Dayen made the case for federal guidance on the payments after the reversal by USAA.
"Only a global solution by Treasury can ensure that the payments get into the hands of individuals struggling to make ends meet and afford basic necessities," wrote Dayen. "A bank-by-bank or state-by-state solution will ultimately not protect everyone in time."
We've had enough. The 1% own and operate the corporate media. They are doing everything they can to defend the status quo, squash dissent and protect the wealthy and the powerful. The Common Dreams media model is different. We cover the news that matters to the 99%. Our mission? To inform. To inspire. To ignite change for the common good. How? Nonprofit. Independent. Reader-supported. Free to read. Free to republish. Free to share. With no advertising. No paywalls. No selling of your data. Thousands of small donations fund our newsroom and allow us to continue publishing. Can you chip in? We can't do it without you. Thank you.