CBA Applauds Senate Action on Stimulus Garnishments

WASHINGTON, DC – Consumer Bankers Association President and CEO Richard Hunt issued the following statement on the Senate’s passage of legislation to prevent the garnishment of COVID stimulus payments:

“Americans are continuing to battle not only the health but also economic impact of the COVID-19 pandemic.

“This legislation is consistent with efforts by both consumer and banking groups to prevent Economic Impact Payments from being subject to garnishments. While most financial institutions stopped bank garnishments, the CARES Act did not allow banks to stop court-ordered garnishments. We are glad to see Congress taking up this important issue.”

NOTE: In May a coalition of consumer and banking associations came together to support bipartisan legislation that would prevent Economic Impact Payments from being subject to garnishment. The groups included the American Bankers Association, Bank Policy Institute, Consumer Bankers Association, The Clearing House, National Consumer Law Center (on behalf of its low income clients), Americans for Financial Reform, Center for Responsible Lending, Consumer Action, Consumer Federation of America, Consumer Reports, National Association of Consumer Advocates, Public Citizen and U.S. PIRG.