Has A Debt Collector Secretly Already Took My Stimulus Check Without Notice?

[Defeated]

I was just told by a relative that its likely that a private debt collector took my stimulus check since my status has yet to update a dd since Wednesday after the RT issues. I think I was just being teased since I’m the only one out of everyone I know that hasn’t gotten it but even though it doesn’t make sense to me since I don’t owe any significant debt other than a credit card bill that is in good standing along with a student loan also in good standing, could this actually be a reason for some that the portal hasn’t updated because their check has already been garnished by private debt collections and then will be notified later in the letter that the IRS is sending out? It does seem plausible in theory but how could the IRS let debt collectors take the checks so directly?

[Eileen]

@zannah @thicks see link below

[Eileen]

I thought the same thing…… so I researched… she has a possible lawsuit and it didnt happen to just her… this went out on 4/13 prior to the deposit…. I found it when I was trying to help her. She just had a baby and was laid off along with the babies father. https://www.doj.state.wi.us/sites/default/files/news-media/4.14.20_CARES_Treasury_Letter.pdf?fbclid=IwAR03SY_zLndZ6qx87eQuCGtghCjdGaRJimuFJdFMpaERnnNCJWBYx-F8ABM#overlay-context=

[Velvetzea]

Stimulus payments cannot be garnished

[thicks]

That seems like a reach. Unless the debt collector is **already** garnishing a person’s wages, I doubt it would have had time to make such a request. In addition, that entity would be flouting the CARES Act and other provisions the federal government has asked entities to uphold during this crisis (not foreclosing, not disconnecting, etc.). They’d be risking some horrible PR and optics.

[Eileen]

Actually my daughter received a portion of her stimulus check on the first day they were released. She had debt in collections for a payday loan with one of those companies. They took $700 from her bank account when the stimulus was deposited. So at midnight that night, it said she had a $1200 pending deposit at 6 am she only had a $500 deposit.

[Defeated]

I know but then there’s this.

“The federal law known as the CARES Act, which authorizes the stimulus, says federal and state governments may not seize the payments to satisfy tax debts, but there isn’t a similar provision for private debts. This means that debt collectors, under a court arrangement known as garnishment, could ask banks to turn over the money to satisfy debts for medical bills, student loans, car payments, or other overdue bills.”

[friendOfReality]

No.

It didn’t happen.

Child support is the only allowable offset per the bill passed by congress

[Author]

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