Banks taking stimulus checks for unpaid debt and fees — what to do - Business Insider

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 45 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 21%
  • Publisher: 51%

Business News News

Business Business Latest News,Business Business Headlines

As of now, there's only one potential solution: Pick up the phone

Electronic payments are supposed to put cash in hands much quicker than a paper check, but some people's money is bypassing them completely and being used to pay off negative balances.published on Tuesday, banks have the implicit right to seize a coronavirus relief payment deposited into a customer's account and use it to offset any delinquent loans or overdraft fees owed to the bank.

"There's nothing in the law that precludes that action," a Treasury Department official reportedly said in reference to the CARES Act on a phone call with banking officials. The bill does, however, explicitly prohibit debt collectors from snatching stimulus payments for unpaid state or federal debts other than child support. In some cases, offsetting negative account balances is an automatic process.

2. If that doesn't work, reach out to a reporter who can publicize the ongoing issue or call attention to a member of Congress who has the power to reach the decision makers.People who bank with credit unions or local banks may be more vulnerable This week, the four largest US banks — Wells Fargo, JPMorgan Chase, Citibank, and Bank of America — have said they will pause collections on unpaid balances so customers can get their full stimulus payment,

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 729. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Americans who request help from their banks get it, but many don't ask - Business InsiderAn April 13 LendingTree survey shows 91% of people who asked for help with credit card and mortgage payments were approved by lenders. It's not about hesitation to ask for help but it's hesistation on how and from where you will return back the help you will ask.
Source: BusinessInsider - 🏆 729. / 51 Read more »