US Senate Bill Would Ban Garnishment Of Relief Funds By Debt Collectors
A bipartisan group of senators have introduced legislation to prevent debt collectors from garnishing coronavirus relief payments from consumers. Sens. Sherrod Brown, D-Ohio, Ron Wyden, D-Ore., Chuck Grassley, R-Iowa, and Tim Scott, R-S.C., have sponsored legislation that would bar private debt collectors from garnishing the “recovery rebates” that were provided to consumers through the Coronavirus Aid, Relief, and Economic Security Act. “Congress came together to pass the CARES Act, which provided money to help working families pay for food, medicine, and other basic necessities — it’s not for debt collectors,” Brown, the top Demcorat on the Senate Banking Committee, said in a press release. “Our bill will protect these funds and ensure working families receive the help they need.” Grassley added that Congress intended for the rebates to help Americans weather the pandemic. “We established these recovery rebates to help individuals and families through the tough times of this pandemic,” said Sen. Chuck Grassley, R-Iowa, who chairs the Senate Finance Committee. “We established these recovery rebates to help individuals and families through the tough times of this pandemic,” said Grassley, who chairs the Senate Finance Committee. “We did not establish them just so debt collectors could swoop in and undermine that purpose.” [as reported in 5/26/20 Credit & Collection e-newsletter]