California Stimulus Check Debt Collector

Stimulus checks cannot be garnished.

California stimulus check debt collector. The second stimulus payment doesn t come with the same rules as the first. The senate has unanimously passed a new bill prohibiting banks and debt collectors from being able to seize the second stimulus checks. California protects cares act stimulus checks from debt collection on april 23 2020 california governor gavin newsom took action to protect cares act coronavirus relief funds from creditors by issuing an executive order closing a loophole that gave quick moving debt collectors access to stimulus money.

And while other states have stepped in to protect the stimulus checks from debt collectors california has not. Advocates want the state to act but they re still waiting for a response. The governor also ordered that any money collected be returned.

The payment is lower at 600 per eligible person and the income limits to qualify are stricter this time. According to the hill the bill had overwhelming bipartisan support and will protect citizens from having their next coronavirus relief payments garnished. But the bill is notably silent on private debt collectors and banks leaving people vulnerable to garnishments.

According to the national consumer law center the following states have implemented new rules on debt collection during covid 19. But the bill is notably silent on private debt collectors and banks leaving people vulnerable to garnishments. If you are scared you ll lose your stimulus check to a debt collector whatever.

And while other states have stepped in to protect the stimulus checks from debt collectors california has not. Californians with consumer debt could see their stimulus checks garnished by collectors. Consumer advocates say this defeats the purpose of cash relief meant to help the most financially unstable stay afloat.

A new state law sb 616 protects the first 1 724 dollars in bank accounts from being garnished it would shield at least some of the stimulus check from being scooped up by debt collectors. Consumer advocates say this defeats the purpose of cash relief meant to help the most financially unstable stay afloat. Californians have begun to see money appear in their bank accounts.