Consumer Bureau Takes Steps to Protect Stimulus Checks

As the stimulus checks from the American Rescue Plan hit bank accounts, consumer advocates have consistently called for protecting these funds from debt collectors.

Now, the Consumer Financial Protection Bureau (CFPB) has taken steps to protect the funds from the stimulus checks from debt collection, overdraft fees, and other means of redirection.

Consumer Financial Protection Bureau (CFPB) Acting Director Dave Uejio issued the following statement regarding consumers’ access to Economic Impact Payment (EIP) funds distributed through the American Rescue Plan:

“The Consumer Financial Protection Bureau is squarely focused on addressing the impact of the COVID-19 pandemic on economically vulnerable consumers and is looking carefully at the stimulus payments that millions are now receiving through the American Rescue Plan. The Bureau is concerned that some of those desperately needed funds will not reach consumers, and will instead be intercepted by financial institutions or debt collectors to cover overdraft fees, past-due debts, or other liabilities.

“In recent days, many financial industry trade associations in dialogue with the CFPB have said they want to work with consumers struggling in the pandemic. Many of these organizations have told us they have begun or soon will take proactive measures to help ensure that consumers can access the full value of their stimulus payments. If payments are seized, many financial institutions have pledged to…