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President Donald Trump's Treasury Department has given U.S. banks a green light to seize a portion or all of the one-time $1,200 coronavirus relief payments meant to help Americans cope with financial hardship and instead use the money to pay off individuals' outstanding debts—a move consumer advocates decried as cruel and unacceptable.
"These payments are supposed to help individuals and families put food on the table during this crisis, not enrich debt collectors." — Maura Healey, Massachusetts Attorney General
"The Treasury Department effectively blessed this activity on a webinar with banking officials last Friday," The American Prospect's David Dayen reported Tuesday.
In an audio recording from the webinar obtained exclusively by the Prospect, Ronda Kent, chief disbursing officer at the Treasury Department's Bureau of the Fiscal Service, told bankers that "there's nothing in the law that precludes" financial institutions from seizing a person's payment and using it to pay off the individual's debts.
"After a third of U.S. renters couldn't make rent this month, the Treasury Department is pointing out opportunities for banks and debt collectors to steal Americans' relief checks out from under them," Jeremy Funk, spokesperson for consumer advocacy group Allied Progress, said in a statement responding to Kent's comments.
"It's the middle of a pandemic," said Funk. "This money should be going toward food, rent, and medicine—it's not the time to hand out favors to debt collection industry donors or pad some big bank's bottom line," said Funk. "Secretary Mnuchin needs to ensure that these $1,200 checks go straight into Americans pockets where they belong."
Government of the plutocrats,by the plutocrats, for the plutocrats.
It is Steve Mnuchin, a former executive at Goldman Sachs - who now runs the Treasury Department. I guess old habits die hard. Steal from the poor and give to the rich has been the motto of Goldman Sachs even before the financial meltdown of 2008. Good to know that old Stevie is still carrying the torch.
Did you actually listen to the recording because your quote is just a part of a sentence pulled out of context. She's says payments owed have been exempted except for delinquent child support payments. Also if it's debt the person owes to the bank itself, that.the bank needs to check with their legal department before they attempt to garnish funds in an account. It's not at all like she's offering up advise to debt collectors. She's answdring questions that were sent to her.
Apparenty the journalist also just hates Trump because they wrote the story and the OP just quoted what the journalist wrote. It's the journalists job to get it right tbough...they have a link to the tape in the article. Were they too lazy to listenn to it, didn't understand it or just just figured no one would bother to listen to it? Either way it's not very good when it's your job to.
Apparenty the journalist also just hates Trump because they wrote the story and the OP just quoted what the journalist wrote. It's the journalists job to get it right tbough...they have a link to the tape in the article. Were they too lazy to listenn to it, didn't understand it or just just figured no one would bother to listen to it? Either way it's not very good when it's your job to.
It's called framing the narrative. This is what they do, day in and day out. Then they wonder why they're one of the most despised and mistrusted institutions in the nation. "Trump is whipping up hatred against us!" they pout. No, Trump got elected precisely because much of the country already hated you.
Government of the plutocrats,by the plutocrats, for the plutocrats.
It is Steve Mnuchin, a former executive at Goldman Sachs - who now runs the Treasury Department. I guess old habits die hard. Steal from the poor and give to the rich has been the motto of Goldman Sachs even before the financial meltdown of 2008. Good to know that old Stevie is still carrying the torch.
Why didn’t Congress exempt debt collection when they wrote the law?
Creditors can only sieze wages or bank accounts with a valid judgement and lien. If your bank has been served with an information subpoena and or liens placed on accounts they must inform you of fact. You'd be a fool to continue depositing any funds into said accounts because bank by law cannot release them unless or until informed by holder of lien.
As it relates to this thread simply do what hundreds if not thousands of others do normally. Get a paper check and go to a check cashing place to have it cashed. All will take federal or local government issued checks (Social Security, tax refunds, veterans, disability, etc...), though you'll pay fees.
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